Have you heard about the Reddit IPO (if approved, Reddit get..

Have you heard about the Reddit IPO (if approved, Reddit gets listed on the stock market)? Wall Street Millennial presents a case it might be the next meme stock. Check it out below and as always I have a few key points for a quick overview. Enjoy if you like the topic or staying informed in general. Mwah! :) https://youtu.be/0jMmGlVi-iw?si=ke6N2znKZuVmroUA 1. **Reddit IPO Overview:** - Reddit recently filed for an IPO with an expected valuation of $5 billion. - The IPO, anticipated in the coming weeks, follows the platform's fame during the GameStop short squeeze, driven by the Wall Street Bets subreddit. - Reddit, launched in 2005, boasts over 270 million weekly active users, making it one of the world's largest social media sites. 2. **Financial Background and Challenges:** - Despite being a 19-year-old company, Reddit has incurred net losses since its inception, including a $140 million operating loss in 2023. - The company emphasizes being in the early stages of monetization, with revenue sources such as advertising, Reddit Premium, NFT marketplace, and API access. - Reddit's monetization lags behind other social media platforms, with Revenue per Weekly Active User at $93, considerably lower than its counterparts. 3. **Monetization Strategies:** - Reddit primarily generates revenue through advertising, offering display ads in user feeds. - Reddit Premium, costing $6 per month, provides additional avatar customization options. - The platform has ventured into the NFT marketplace and API access for third-party applications, with mixed success. 4. **Challenges in Monetization:** - Reddit faces challenges in ad targeting due to a substantial portion of users being logged out, resulting in lower conversion rates and less appealing to advertisers. - Despite claiming meaningful investment in ad technology since 2018, Reddit's monetization progress appears limited, with Revenue per User showing stagnation. 5. **AI Data Licensing Deal and Unusual IPO Allocation:** - Reddit signed a $66 million per year deal with Google, granting access to its data repository for AI model training, possibly boosting Reddit's valuation. - The IPO plans to allocate shares to Reddit moderators, an unconventional move that may generate high interest but could lead to market instability, reminiscent of the GameStop short squeeze.