Online message board operator Reddit is gearing up to launch an IPO in March, according to Reuters. The listing plans come at a time when social media companies are facing heightened competition for advertising spending, and newer entrants, such as TikTok, are all the rage.
Reportedly, Reddit has been eyeing a listing for over three years now. Over the past few years, armies of Reddit users have given short-sellers a run for their money by fueling rallies in meme stocks such as GameStop (NYSE:GME) and AMC (NYSE:AMC).
According to the Reuters report, Reddit’s public filing could come next month, followed by a roadshow in early March. Founded in 2005, Reddit was last valued at nearly $10 billion in 2021. The company generates revenue via advertising as well as premium access. According to the Information, Reddit is expected to garner over $800 million in advertising revenue in 2023.
Which Social Media Stock is Best?
The IPO plans come at a time when broader equity markets have remained buoyant over the past few months, and social media stocks have clocked impressive price gains. Shares of Meta Platforms (NASDAQ:META) and Snap (NYSE:SNAP) have surged by 177% and 65%, respectively, over the past twelve months. While Yelp’s (NYSE:YELP) 52% price gain during this period appears moderate, the TipRanks Comparison Tool indicates that it has the highest upside potential among the names on the list below at 12.4%.
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