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Reddit: Return Of The Profitless And Overvalued Ipo (pending:rddt)

by seekingalpha.com posted 1month ago 123 views
Private Equity
Reddit, (RDDT), should start trading as a newly public company sometime in March. At this projected valuation of $5 billion, or any higher, Reddit earns an Unattractive Stock Rating. While Reddit’s projected $5 billion or higher valuation is half of its $10 billion private market valuation seen in 2021 when interest rates were zero and money was cheap, we believe it remains much too high. Reddit reminds us of the fast-growing, but highly unprofitable IPOs we saw in 2021. Sure, Reddit birthed some of the most volatile meme stocks through the WallStreetBets subreddit, but the company has never been profitable.

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