Reddit extends gains after 30% surge, sets course for a new record high


Reddit (RDDT) extends gains after 30% surge, sets course for a new record high

 

Reddit’s (RDDT) stock is poised for another day of gains in Tuesday’s premarket trading, around 8%, and setting the stage to achieve a new record high.

This surge follows a robust 30% rally on Monday, as the social media giant continues to captivate investors’ interest after debuting on the New York Stock Exchange last week.

Shares ended Monday trading at $59.80, notably higher than its initial public offering (IPO) debut price of $34.

The shares, which debuted at $34 on Thursday, closed at $59.80. Reddit and existing investors raised roughly $750 million combined in the offering.

On their first trading day, RDDT shares surged by 48%, generating millions of dollars for its community of moderators and users, known as Redditors. Along with their families, Redditors took part in the IPO through a directed-share program similar to those used by Airbnb and Rivian.

Sam Altman, OpenAI CEO and an early backer of Reddit, saw his investment balloon from $200 million to over $613 million post-IPO.

Reddit’s public offering, occurring alongside Astera Labs’ (ALAB) 72% jump on their Nasdaq debut, marked the first major social media IPO since Pinterest in 2019.

Investors were closely following the two offerings, looking for hints of a potential revival of the IPO market, which had slowed down amid rising interest rates and inflation concerns since 2022.

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