Back in September, Reuters reported that Reddit, which was founded in 2005 by Steve Huffman and Alexis Ohanian, was hoping to reach a valuation exceeding $15 billion by the time it planned to list its shares.
The San Francisco-based company’s message boards have been at the heart of a pitched battle between small-time traders and large Wall Street firms that carried forward big gains in highly-shorted shares of companies such as GameStop and helped to grow the popularity of the term “meme stocks”.
At the peak of the craze in February, Reddit’s value doubled to $6 billion from the previous year and, in August, was valued at $10 billion in a private fundraising round.
In October 2020, Reddit had approximately 52 million daily active users and over 100,000 communities. In the second quarter of this year, the company reported $100 million in advertising revenue, almost a threefold jump from the same period in 2020.