Why Reddit Stock Skyrocketed in Its IPO Today
Reddit (NYSE: RDDT) stock saw explosive gains in its first day of trading. The company's share price closed out the daily session up 43%, according to data from S&P Global Market Intelligence.
Reddit had its initial public offering (IPO) and began trading on the stock market this morning, and shot higher out of the gate. The company had priced its stock at $34 per share, but the stock actually began trading at roughly $47 per share and reached as high as $57.80 earlier in today's session. At its peak, the company's stock had been up 70% from its IPO price.
Reddit stock's much-anticipated public debut has finally arrived, and it's been a big success for the company. The social-networking site raised roughly $519 million by selling shares, and gains for the stock upon hitting the market have pushed the company's valuation up to roughly $7.6 billion. While that's still below the approximately $10 billion private valuation the business garnered a few years ago, there's clearly appetite for the stock -- and upcoming moves from the company could help to send its share price higher.
Source Fool.com
