Reddit Shares Close First Trading Day Up 48%

Shares of social media platform Reddit closed their first day of trading in New York up 48%, signaling a potential resurgence in investor interest for initial public offerings of promising yet loss-making companies, Niket Nishant and Echo Wang reported for Reuters.

Reddit has attracted investors by positioning its content as a training ground for artificial intelligence (AI) programs. I Photo: New York Stock Exchange Facebook

Reddit, which has not reported an annual profit since its launch in 2005, attracted investors by positioning its content as a training ground for artificial intelligence (AI) programs.

Last month, Reuters revealed that Reddit secured a data licensing deal with Google worth approximately $60 million annually.

While Reddit primarily relies on advertising for revenue, it highlighted AI as a growth area during its IPO marketing roadshow.

The company also disclosed that the US Federal Trade Commission (FTC) is investigating its AI data licensing deals.

"At our core, we are a growth company. Achieving our mission means that we aim to expand our user base and community," stated Jen Wong, Chief Operations Officer at Reddit.

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