Explore ways to own Reddit stock during the Reddit IPO. The Reddit IPO date is now expected in March 2024. Get access to the Reddit IPO at SoFi Invest and Robinhood. The S-1 filing indicates both brokers may provide IPO access to customers.
Read the S-1 Filing and IPO Terms. A Wall Street Journal report on February 21, 2024, indicated Reddit will offer IPO shares to 75,000 of its most prolific Redditors. Confirmed in S-1. See the Directed Share Program below for more.
Table of Contents
Recent Reddit IPO Stock News
02/22/2024: Reddit IPO Filing is Live
02/21/2024: Reddit Plans to Sell Stock to Loyal Users
02/16/2024: Reddit Signs AI Content Licensing Deal Ahead of IPO
01/28/2024: Reddit Advised to Target at Least $5 Billion Valuation in IPO
01/22/2024: Reddit’s March IPO could buoy its ads business
01/18/2024: Reddit seeks to launch IPO in March
What is Reddit?
Reddit is a social media company that aspires to be the heart of the internet. The website offers news aggregation, discussion forums, and content ratings (upvote/downvote) for member posts within subreddit online communities.
Subreddits are user-created and moderated online communities. Each has specific rules and content moderation policies to ensure community posts adhere to the founders’ intent of each subreddit.
Reddit consistently ranks in the top 20 most visited websites worldwide.
Founded by University of Virginia students in 2005, Reddit is one of the longest private venture-backed startups in the IPO pipeline.
The Reddit IPO may be just around the corner. Here’s a video preview:
Is Reddit Stock Publicly Traded Today?
No. Reddit is a private company. But it will soon be publicly traded.
When is the Reddit IPO Date?
The Reddit IPO date is expected in March 2024. It’s been a leader on our list of likely IPO candidates.
Reuters reported on January 18th, 2024:
Reddit is planning to make its public filing in late February, launch its roadshow in early March, and complete the IPO by the end of March.
The company submitted a confidential IPO filing to the SEC in December 2021 at the height of IPO euphoria. However, the 2022 market downturn and IPO slowdown likely led to a shuttering of IPO plans that year.
Reddit released its S-1 to the public on February 22nd, 2024.
What is the Reddit Stock Symbol? Reddit Ticker?
The Reddit stock symbol will be “RDDT” and will trade on the NYSE.
Reddit IPO Terms
- Common Stock Offered: TBD
- Reddit IPO Price Range: TBD
- IPO Date: TBD
- Reddit Ticker: “RDDT”
- Reddit IPO Valuation: TBD
- Raise: TBD
- Lead Underwriters: Morgan Stanley, Goldman Sachs, JPMorgan
- Opening Trade: TBD
Where can I find the Reddit S-1 Filing?
The Reddit S-1 filing is now available. Here is the February 22nd, 2024 version.
Get the latest versions as they become available on the SEC website
In the meantime, you can check out the most recent S-1 filings in our filings feed.
What is the Reddit Stock Price?
A public Reddit stock price does not exist because the company remains private.
Reddit will update it’s S-1 filing with terms in the coming weeks, which will include an initial IPO price range. Depending on demand, underwriters will choose a final Reddit IPO the evening before the IPO.
Who Owns Reddit?
Reddit owners include the founders, early investors, employees, venture capital firms, and celebrity investors.
Prominent venture capital investors include Andreessen Horowitz, Sequoia Capital, Coatue, Fidelity, Tencent, and Vy Capital.
Several high-profile and celebrity investors have also invested in Reddit, including Sam Altman, Marc Andreessen, Peter Thiel, Ron Conway, Snoop Dogg, and Jared Leto.
Reddit last raised money in August 2021, collecting $700 million in Series F funding. The company has raised around $1 billion in venture capital funding.
What is the Reddit Valuation?
The August 2021 fund raise confirmed the Reddit valuation at $10 billion.
Reporting about a potential Reddit IPO indicates the company aims to raise IPO funding at a $15 billion valuation.
However, private market data provided by Hiive suggests the Reddit valuation is closer to $4 to $5 billion.
We’ll find out what the Reddit IPO valuation is the evening before the IPO when the final price is set. A week or two earlier, we’ll get a range.
How to Invest in Reddit Stock
Buying private shares will likely become more challenging as Reddit approaches its IPO date. Current shareholders are less likely to liquidate in private transactions when a public transaction is near.
Aspiring shareholders can increase their chances of early equity ownership or obtain shares in the IPO by taking the actions outlined below.
A small portion of Reddit community leaders may receive a direct opportunity to invest. Watch your emails.
1. Access Reddit IPO Shares Through a Broker
Now that Reddit is pursuing an IPO to become a public company, nimble investors may find investment opportunities via participating online brokers.
At an estimated $15 billion valuation, there will be significant share volume to distribute, though it will likely be oversubscribed and difficult to acquire shares.
The following online brokers give their users access to IPOs:
IPO underwriters control where IPO shares get distributed.
Goldman Sachs has a history of distributing shares to retail brokers and is one of the firms working with Reddit. However, Morgan Stanley is also present and has the opposite history and reputation.
Many shares will go to the underwriters’ wealthy clients. We learn about this access in the S-1 filing, which comes out a month or two before the IPO, and then get updated with more details as the IPO approaches.
Usually, one week out, we learn which brokers will get access.
The brokers in the list above are the most likely to offer shares to retail investors because they have processes built into their platforms.
TradeStation has a long track record of accessing more than 360 IPOs and secondary offerings via its partnership with ClickIPO.
Robinhood and SoFi Invest have the advantage of Silicon Valley networks, which could be helpful with Reddit.
There may be enough retail shares for multiple brokers to get an allocation.
Read the S-1 filing to find mentions of these online brokers to identify opportunities.
Check out this list of best brokers for IPO investing to learn more about IPO access for retail investors.
2. Invest via a Directed Share Program (Happening!)
Will the Reddit community get a chance to invest in the Reddit IPO? Recent reporting by the Wall Street Journal indicates they will.
The newspaper reported that up to 75,000 of Reddit’s most prolific users may receive an opportunity to participate in the Reddit IPO.
Here are the Directed Share Program terms from the S-1 filing:
As a community platform, Reddit is committed to providing users and moderators with an opportunity to participate in this offering. At our request, and reflecting our desire to set aside a significant number of shares for certain of our users and moderators, the underwriters have reserved up to TBD shares of our Class A common stock, or TBD% of the shares offered in this offering, for sale at the initial public offering price through a directed share program to:
• eligible Reddit users and moderators;
• certain members of our board of directors; and
• friends and family members of certain of our employees and directors.
Users and moderators who created an account on or before January 1, 2024 are potentially eligible for the directed share program. Eligible participants must reside in the United States and be at least 18 years of age. Further, eligible users and moderators must be in good standing on our platform and cannot be a current or former Reddit employee.
We will invite users and moderators to participate in the directed share program in six phased priority tiers. We will assign each eligible participant to a tier based on that participant’s contributions to Reddit. User contributions will be measured in karma (a user’s reputation score that reflects their community contributions). Moderator contributions will be measured by membership and moderator actions on our platform. If demand for the directed share program in an earlier tier exceeds capacity, eligible users and moderators will have the option to join a waitlist. An invitation to participate in the directed share program does not guarantee that the participant will receive an allocation of shares. Accordingly, we cannot provide any assurance that any eligible participant will receive an invitation or an allocation in the directed share program.
Shares purchased through the directed share program will not be subject to the terms of the lock-up agreement or market standoff restrictions.
The number of shares of Class A common stock available for sale to the general public will be reduced to the extent that such persons purchase such reserved shares. Any reserved shares not so purchased will be offered by the underwriters to the general public on the same basis as the other shares offered by this prospectus. will administer our directed share program.
When companies file their S-1 SEC filing (to kick off the IPO process), they sometimes include a directed share program for executives, affiliates, and loyal customers.
Reddit can attribute its success to its leading community members. Companies can use the IPO as an opportunity to reward them.
This has happened before.
- Uber offered shares to drivers who completed a certain number of trips.
- GoPro offered shares to its email list.
- Airbnb offered IPO shares to hosts.
- Robinhood offered IPO shares to its customers.
A directed share program is now likely in the Reddit IPO, so users should still monitor emails leading up to the IPO.
However, users should perform due diligence before investing.
Bookmark this page for more information as the IPO approaches.
3. Monitor Reddit stock availability on pre-IPO investing platforms
***This option is less likely now that Reddit has filed confidentially for an IPO***
Non-accredited retail investors can bypass the accreditation requirement to own pre-IPO companies by owning the Fundrise Innovation Fund.
But pre-IPO investors cannot select individual companies, and Reddit stock is currently not present in the portfolio.
I have seen evidence of Reddit stock being available on pre-IPO platforms.
Investors can still monitor pre-IPO investing platforms such as EquityZen, Equitybee, Forge Global, and Linqto for share availability.
Expect to pay at least a $10,000 investment minimum. In some cases, the minimum investment is much higher.
Signing up for online access to pre-IPO data and deal alerts is free.
Please note: This is a testimonial in partnership with Fundrise. We earn a commission from partner links on AccessIPOs.com. All opinions are my own.
4. Buy the stock after the Reddit IPO
A pending Reddit IPO, potentially in 2024, may limit retail investors chances to secure pre-IPO shares.
Investing post-IPO offers advantages with comprehensive financial data available after a few quarters. Pre-IPO investing lacks such transparency.
IPOs yield rising stock prices in the short term, especially for high-demand companies. Early entry and strategic selling could empower nimble investors to capitalize.
Post-IPO, beware of inflated share prices. Avoid hasty purchases, as post-lockup expirations and earnings disappointments often lead to declines within the first year of trading.
Selective and patient investing, particularly in disruptive companies like Reddit, promises higher valuations in the long run.
Reddit News Archive
11/27/2023: Reddit Leads Class of 2024 IPO Candidates
01/07/2022: Reddit Taps MS and GS for IPO
12/15/2021: Reddit files confidentially to go public
08/12/2021: Reddit Secures Funding to Continue Growth Plans
02/08/2021: Reddit raises $250 million in Series E funding
02/11/2019: Reddit valued at $3 billion
07/31/2017: Reddit raised $200 million in funding
09/07/2014: Reddit Raising a Big Round at $500 Million Valuation
Reddit community members may seek an investment in the online destination that many call their internet home.
However, pre-IPO Reddit shares may remain elusive now that talks of an impending Reddit IPO are active again.
As always, retail investors should be cautious. The current IPO sentiment is fragile after multiple lackluster 2023 IPOs.
With interest rate increases slowing or complete, the IPO environment may improve in 2024.
The Reddit financials will be critical for retail investors to review in pursuit of IPO access. Evaluate the company as if it were public already to determine if the IPO valuation is palatable.
Pre-IPO investing platforms have opened more opportunities for retail investors. However, opportunities to invest in Reddit stock before the IPO will likely be limited going forward as it approaches its offering date.
Temper your expectations if you’re interested in pursuing pre-IPO equity in Reddit. You’ll likely need to wait for the IPO, but it may be around the corner. Monitor the IPO brokers mentioned above and this website for the latest.
Good luck if you wish to buy Reddit stock during the Reddit IPO. Invest in pre-IPO and IPO companies at your own risk.
* Disclosure: The web page contains affiliate links from our partners. If a reader opens an account or buys a service from a link in this article, we may be compensated at no additional cost to the reader. Opening an account with a broker that provides access to IPOs does not guarantee the customer allocations of specific IPOs. The author is long HOOD and the Fundrise Innovation Fund.