Reddit

J.P. Morgan and Morgan Stanley started coverage on Reddit with equivalent to “hold” ratings, as they wait for clarity on the social media company’s user growth, while staying bullish on ad-revenue growth and artificial intelligence (AI) initiatives. Shares of Reddit were up 0.88% at $42.64 in premarket trading. While Reddit, which made its market debut last month, still relies on advertising for the vast majority of its revenue, it touted AI in its initial public offering marketing roadshow as an area of growth.

Reddit, the 19-year-old website that hosts millions of online forums, priced its IPO on Wednesday at $34 a share, the top of the expected range. The offering brought in $519 million, according to Reddit, and values the company at close to $6.5 billion. Reddit had planned to price the deal at $31 to $34 a share.

Reddit Inc. and its investors disclosed further details of what is set to be one of the year’s biggest initial public offerings in which they are seeking to raise as much as $748 million. The social media platform said in a filing Monday that it and its investors are planning to sell 22 million shares for $31 to $34 each. About 15.3 million those shares will be sold by the company and the rest by investors and Reddit employees.

The House committee investigating the Jan. 6 attack on the Capitol issued subpoenas on Thursday to four major social media companies — Alphabet, Meta, Reddit and Twitter — criticizing them for allowing extremism to spread on their platforms and saying they have failed to cooperate adequately with the inquiry.

Tech companies led by Mozilla are urging the FCC to swiftly reinstate net neutrality rules stripped away under the Trump administration. In a letter to FCC Acting Chairwoman Jessica Rosenworcel on Friday, ADT, Dropbox, Eventbrite, Reddit, Vimeo and Wikimedia joined Mozilla, the maker of the Firefox web browser, in calling net neutrality “critical for preserving the internet as a free and open medium that promotes innovation and spurs economic growth.”

The start-up, which was at the center of a recent stock market frenzy, was valued at $6 billion in the new funding round.

The Federal Trade Commission on Monday voted to issue orders to nine major internet platforms requiring information about how they handle data for a new study. The orders, which do not implicate any legal wrongdoing, were sent to Amazon, ByteDance (the parent company of TikTok), Discord, Facebook, Reddit, Snap, Twitter, WhatsApp and Youtube. The agency is requesting information about how the platforms collect, use, track or estimate personal and demographic information.

Both Twitch and Reddit have made moves against the president’s political content, citing violations of terms of service. Twitch confirmed today that it has temporarily suspended the president’s account. “Hateful conduct is not allowed on Twitch,” a spokesperson for the streaming giant said.

The agreement will let Tegna’s stations source Reddit’s hyperlocal content for their news broadcasts and digital properties.

If your local news team is just using Instagram, Facebook and Twitter, it is missing out on a platform that often produces unique story ideas: Reddit. As of 2017, Reddit had 330 million average monthly users — which Social Media Today says puts it on par with Twitter. But Reddit is not your typical digital platform.

Reddit, the news and info sharing site that is wildly popular among Millennials, may finally be making inroads on Madison Avenue. New estimates released today by the digital statsmasters at eMarketer forecast Reddit will top the $100 million mark in advertising sales this year.