IPO Revival! Reddit's stock price soars rapidly after going public, with longtime whitelist users earning millions of dollars.

After Reddit's IPO earlier this year, its stock price surged by 30%. It seems that investors are not afraid of the recent market unpredictability, showing strong support for this beloved social media platform, pushing its stock price from the initial $34 to $59.80 at Monday's close.

Reddit Bull Market Shines, Long-time Users Benefit

Reddit's stock surged 48% on its first day of trading on the New York Stock Exchange. It not only attracted widespread attention, but also brought lucrative returns to the platform's moderators and enthusiastic users, collectively known as Redditors. Through a directed-share program similar to Airbnb and Rivian, Reddit provided these core community members with a rare opportunity to participate in the IPO, earning millions of dollars in bonuses.

OpenAI CEO Sam Altman Also Profits from Reddit

One of the significant beneficiaries of Reddit's market performance is OpenAI's CEO Sam Altman, who is an early investor and former board member. Altman's stake in Reddit surged from $200 million to $613 million post IPO, showcasing the lucrative potential of early-stage tech investments.

Reddit's IPO frenzy, along with Astera Labs' 72% stock price surge during its Nasdaq IPO, reignited interest in the IPO market. Reddit's successful public offering, the first major public offering from a social media entity since Pinterest in 2019, is closely watched as a future tech IPO benchmark, especially amidst market concerns about rising interest rates and inflation.

What Does Reddit's IPO Mean for the Tech Industry?

Lo Toney, Founding Managing Partner of Plexo Capital and Reddit shareholder, believes that Reddit's IPO is a dawn for the entire tech industry. According to Toney, strong investor interest was observed during Reddit's roadshow, indicating that the market is ready for more tech companies to go public. However, he cautions that several more successful cases are needed before announcing a full-fledged IPO revival.

While excitement abounds, Toney also points out future challenges, including the disparity between private market valuations and public market expectations. For Reddit, its valuation in the last round of private funding in 2021 was $10 billion, with its IPO valuation adjusted to around $6.5 billion, highlighting the complexities of transitioning from the private market to the public market.

Reddit applies for IPO, holding BTC, ETH, with Sam Altman as an investor