Reddit, which showed the world the power wielded by retail investors when grouped together on social media, said that it has filed for an initial public offering, in a year that has seen major tech stocks fare extremely well.
Reddit users had rallied around GameStop stocks in January in what’s considered the first online-based democratically unified stock purchase by retail investors. The stock was set to “short” by institutional investors, when Reddit users started a campaign and bought GameStop resulting in a record 24 billion shares traded on U.S. exchanges, effectively kickstarting the meme-stock trend. GameStop stock prices jumped 1,000 percent in a period of two weeks.
A controversial investment by China-based Tencent in 2019 had raised eyebrows among users of the platform along with free speech advocates who believe that the Chinese Communist Party (CCP) might influence Reddit posts.
Reddit has been moving to international markets and investing in video and consumer products. In recent years, alongside other major platforms, Reddit has been plagued with content-moderation controversies and censoring of “mis-information.” Last year, it banned the subreddit, The_Donald, featuring mostly supporters of President Donald Trump, citing violation of rules.
Currently, the ninth most popular social media app in the United States, Reddit is visited daily by around 52 million users, with 48 percent from the country.
Known as the “front page of the internet,” Reddit has over 430 million monthly active users. Around 25 percent of American adults use the platform. Other major traffic comes from the UK, Canada, Australia, and Germany. Reddit has generated around $100 million during the second quarter, 2021, in ad revenue, and expects to bring in $350 by the end of the year.