Reddit users have helped fuel dozens of "meme" stock rallies this year, from retailer GameStop to movie operator AMC Entertainment Holdings. Some analysts are sceptical this will be the social media platform's saving grace as it prepares to sell its own shares in the stock market.
The San Francisco-based company filed confidentially this week with US regulators for an initial public offering. It is aiming for a valuation of at least $15 billion, Reuters reported in September.
Reddit co-founder and chief executive Steve Huffman is hoping that retail investors will play a big role in the stock market debut. "I want our users to be shareholders and I want our shareholders to be users," he told an audience at the Wall Street Journal's Tech Live conference in October.
Many Reddit users indicated in posts on Thursday that they would back the IPO. But several industry analysts questioned whether the "meme" stock trend will carry Reddit's stock over the long term.
Wedbush internet securities analyst Ygal Arounian said it was unclear whether the influx of Reddit users, who were drawn to the company's forums to rally around buying certain stocks, including GameStop's shares in January, would be enough to support further growth at the company.
"The question is, was that lift sustainable?" he said.
A Reddit spokesperson declined to respond to industry analysts' scepticism of its public company's growth prospects, citing the "quiet period" that accompanies the filing of paperwork with the Securities and Exchange Commission.
At a $15bn valuation, Reddit would be valued at 20 times revenue, or three times the multiple of Facebook owner Meta Platforms, according to Breakingviews.
That is despite the 16-year-old company significantly trailing Facebook and other major social media companies in users and revenue.
Reddit brought in $100 million in advertising revenue in the second quarter of this year, according to the company. That reflects a tripling from a year ago, or about $400m annually on a run-rate basis, serving about 52 million users daily.
Facebook, which was founded just a year before Reddit, generated $85.9bn in 2020 and serves about three billion global users. Twitter, which launched in 2006, reported $3.72bn in revenue last year and now attracts 211 million users a day.
Reddit's appeal to advertisers is limited as it remains a sideshow in their marketing plans compared to platforms like Facebook that offer far larger audiences, said Matt Navarra, a Britain-based social media consultant whose previous clients include Google, the BBC and International Red Cross.
This is because Facebook and YouTube lure marketers with highly targeted text and video ads that are designed to drive sales. Reddit's users have also been critical of the platform carrying too much advertising.
Reddit has taken a more hands-off approach to content moderation compared to its bigger rivals, counting on its loyal communities to police themselves. This approach has resulted in material such as hate speech that advertisers avoid, although the company has made progress in recent years in limiting that content.
"It feels like quite a scary place to be for many small to medium and bigger brands who are cautious about where they place themselves," said Mr Navarra.
Reddit has changed little in its basic features since it was spun off from magazine conglomerate Conde Nast in 2011. Its recent surge in appeal is down to the popularity of WallStreetBets and other forums on its platform that have become a venue for retail investors to speculate on stocks.
It feels like quite a scary place to be for many small to medium and bigger brands who are cautious about where they place themselves
Matt Navarra,
social media consultant
Drawing more users will require new features as Reddit's rivals chase the metaverse, virtual reality, audio chatrooms and newsletters, analysts said.
The company has made some efforts to freshen its appeal. In December, it acquired Dubsmash, a TikTok-like app. It has also launched real-time features for the first time such as voting animations and typing indicators.
Reddit may also be able to generate more advertising revenue from its existing base of loyal users, which could be catnip for some advertisers, said research firm LightShed Partners analyst Rich Greenfield.
"Whether that’s on video gaming, whether that’s on stocks like WallStreetBets, or whether that’s on Marvel or Star Wars lore, Reddit creates an environment where you can target passionate communities of consumers," Mr Greenfield said.
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
The%20specs
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Killing of Qassem Suleimani
Infiniti QX80 specs
Engine: twin-turbocharged 3.5-liter V6
Power: 450hp
Torque: 700Nm
Price: From Dh450,000, Autograph model from Dh510,000
Available: Now
Afro%20salons
%3Cp%3E%3Cstrong%3EFor%20women%3A%3C%2Fstrong%3E%3Cbr%3ESisu%20Hair%20Salon%2C%20Jumeirah%201%2C%20Dubai%3Cbr%3EBoho%20Salon%2C%20Al%20Barsha%20South%2C%20Dubai%3Cbr%3EMoonlight%2C%20Al%20Falah%20Street%2C%20Abu%20Dhabi%3Cbr%3E%3Cstrong%3EFor%20men%3A%3C%2Fstrong%3E%3Cbr%3EMK%20Barbershop%2C%20Dar%20Al%20Wasl%20Mall%2C%20Dubai%3Cbr%3ERegency%20Saloon%2C%20Al%20Zahiyah%2C%20Abu%20Dhabi%3Cbr%3EUptown%20Barbershop%2C%20Al%20Nasseriya%2C%20Sharjah%3C%2Fp%3E%0A
Two-step truce
The UN-brokered ceasefire deal for Hodeidah will be implemented in two stages, with the first to be completed before the New Year begins, according to the Arab Coalition supporting the Yemeni government.
By midnight on December 31, the Houthi rebels will have to withdraw from the ports of Hodeidah, Ras Issa and Al Saqef, coalition officials told The National.
The second stage will be the complete withdrawal of all pro-government forces and rebels from Hodeidah city, to be completed by midnight on January 7.
The process is to be overseen by a Redeployment Co-ordination Committee (RCC) comprising UN monitors and representatives of the government and the rebels.
The agreement also calls the deployment of UN-supervised neutral forces in the city and the establishment of humanitarian corridors to ensure distribution of aid across the country.
MATCH INFO
Manchester United 2
(Martial 30', McTominay 90 6')
Manchester City 0
SPECS
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%202-litre%204-cylinder%20turbo%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E268hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E380Nm%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh208%2C000%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENow%0D%3Cbr%3E%3C%2Fp%3E%0A
WISH
%3Cp%3E%3Cstrong%3EDirectors%3A%3C%2Fstrong%3E%20Chris%20Buck%2C%20Fawn%20Veerasunthorn%3Cbr%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Ariana%20DeBose%2C%20Chris%20Pine%2C%20Alan%20Tudyk%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203.5%2F5%3C%2Fp%3E%0A
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
What sanctions would be reimposed?
Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:
- An arms embargo
- A ban on uranium enrichment and reprocessing
- A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
- A targeted global asset freeze and travel ban on Iranian individuals and entities
- Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
The years Ramadan fell in May
'The Woman in the House Across the Street from the Girl in the Window'
Director:Michael Lehmann
Stars:Kristen Bell
Rating: 1/5
Traits of Chinese zodiac animals
Tiger:independent, successful, volatile
Rat:witty, creative, charming
Ox:diligent, perseverent, conservative
Rabbit:gracious, considerate, sensitive
Dragon:prosperous, brave, rash
Snake:calm, thoughtful, stubborn
Horse:faithful, energetic, carefree
Sheep:easy-going, peacemaker, curious
Monkey:family-orientated, clever, playful
Rooster:honest, confident, pompous
Dog:loyal, kind, perfectionist
Boar:loving, tolerant, indulgent
Libya's Gold
UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves.
The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.
Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.
A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.
Zayed Sustainability Prize
COMPANY PROFILE
Name: Cofe
Year started: 2018
Based: UAE
Employees: 80-100
Amount raised: $13m
Investors: KISP ventures, Cedar Mundi, Towell Holding International, Takamul Capital, Dividend Gate Capital, Nizar AlNusif Sons Holding, Arab Investment Company and Al Imtiaz Investment Group
UAE SQUAD FOR ASIAN JIU-JITSU CHAMPIONSHIP
Men’s squad: Faisal Al Ketbi, Omar Al Fadhli, Zayed Al Kathiri, Thiab Al Nuaimi, Khaled Al Shehhi, Mohamed Ali Al Suwaidi, Farraj Khaled Al Awlaqi, Muhammad Al Ameri, Mahdi Al Awlaqi, Saeed Al Qubaisi, Abdullah Al Qubaisi and Hazaa Farhan
Women's squad: Hamda Al Shekheili, Shouq Al Dhanhani, Balqis Abdullah, Sharifa Al Namani, Asma Al Hosani, Maitha Sultan, Bashayer Al Matrooshi, Maha Al Hanaei, Shamma Al Kalbani, Haya Al Jahuri, Mahra Mahfouz, Marwa Al Hosani, Tasneem Al Jahoori and Maryam Al Amri
