Will Investors Upvote Reddits IPO Despite Tough Ad Market? [Video]

Even as the market hits record highs, social-media platform Reddit’s initial public offering will test investor appetite for a newly minted stock. This company has yet to turn a profit and operates in a highly competitive industry.

Ahead of its listing on the New York Stock Exchange, Reddit has laid out a plan to expand its nascent advertising business and diversify its revenue sources by licensing its content to third parties. The company’s cash flows are improving, and it’s generated buzz by reserving some shares at its IPO price for users.

However, buyers will own shares of a company that hasn’t seen a full year of profitability. Reddit also faces stiff competition for digital ad dollars from established firms many times its size, including Alphabet GOOGL/GOOG and Meta Platforms META, a giant in the social-media landscape. The site is also no stranger to controversy, most recently over its 2023 decision …