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• r/IPO is Coming 💰

• Asteroids ☄️

• Trending Tools ⚒️ 

r/IPO is Coming 💰

The landscape of venture-backed tech IPOs has been as dry as the Sahara in the past few years. But there’s a rumble of excitement. 

The camel on the horizon?

None other than the social media platform - Reddit.

The same r/wallstreetbets crowd that turned GameStop into a Wall Street soap opera might soon get their on the very stock that birthed their existence in the first place.

Talk about life coming full circle.

Reddit’s S-1 papers are 200+ pages long but don't worry, we’ve pulled a lot of all nighters and drank a lot of coffee to read the entire document and we’ve found some interesting things.

Show Me the Money

While Reddit stands apart from its competitors in many ways, its revenue streams aren’t so different. 

The company made a revenue of $804M in 2023 primarily through advertising. Despite posting a revenue growth of 21% YoY, Reddit still posted a net loss of $90.8M.

How does Reddit then plan to assuage the Wolves at Wall Street to pump (NYSE:RDDT) when the bell rings?

The Investor Pitch

Despite existing for 19 years now, Reddit claims to be in the early stages of growing revenue through advertising.

The company believes it can utilize ML models to better match supply and demand and deliver ROI for its advertisers, presenting a future-scope for their advertising biz.

The company is also trying to hop on to the AI bandwagon, albeit a bit differently. 

OpenAI has catapulted humanity into a new era of computing centered around AI. And Reddit finds itself in a fortunate position.

Its universe of UGC (user-generated content) makes it one of the most valuable datasets for training AI models in existence. 

So, the ability to license this dataset now makes it a great time for their IPO. They just signed a $60M/year with Google to license its data.

Only(for)Fans

If you’ve been a loyal Reddit user, then the company wants to share its probable success with you. 

Reddit plans to reserve some amount of shares so that 75K of its power users can buy its stock before it goes public. 

This isn’t exactly the traditional IPO scenario, which usually sees most new shares go to large asset managers that provide valuable price stability by holding the stock longer and incrementally selling it off to the public. 

P.S: Check out here if you qualify for the pre-IPO shares here - link.

☄️ Asteroids ☄️

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Stack Overflow's new OverflowAPI lets AI companies tap into its knowledge base, starting with Google to boost Gemini for Google Cloud. It's a fusion of human expertise and AI prowess for developers! 🌐💡

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