Reddit Aims for $15 Billion IPO in 2024
Reports have emerged that Reddit is aiming to launch its IPO in 2024, with the target valuation being $15 billion. However, new analysis shows that the social platform’s valuation is very optimistic.
SocialMediaToday has analysed the platform’s alleged IPO plans, highlighting that its $15 billion valuation doesn’t truly reflect its popularity compared to other social sites.
For example, X (formerly Twitter) has more than 3x as many daily active users (250 million), when compared with Reddit (70 million). And at this moment, some value X at around $19 billion.
While optimistic targets are not surprising, SocialMediaToday points out that Reddit’s problems go slightly further.
The social platform, which hosts messaging boards on different topics, has never managed to return to its peak of 200 million daily active users in 2019. While that period saw popularity, it was also a time where the platform was less moderated, meaning more offensive content.
A few years have passed and the platform has since cleaned up these areas, but it is now struggling to grow at the rate of its competitors. Each year Reddit sees 6 million active users join, while Snapchat sees 50 million join, for example.
“Reddit should be adding more if it sees itself as a $15 billion company, while its ad run rate, at $800 million, is also well behind others in the sector”, the article points out.
