Reddit breaks away from the social media pack, raises 2023 IPO prospects
Advertisers are finding two social media platforms taking up more and more of their screen space…
lol Twitter. TikTok shouldn’t come as a shocker, but Reddit…
The underdog has taken us by surprise — likely benefiting from Twitter’s problems.
Per The Information, Reddit’s growing ad business should raise prospects for a 2023 IPO.
- Reddit is among the list of tech giants itching to go public, including Stripe, Instacart and Databricks.
- Reddit confidentially filed to go public over a year ago — plans that were put on hold as markets collapsed.
Founded nearly 18 years ago, Reddit is almost as old as DiCaprio’s new gf. The median age of tech companies going public is 8 years.
But Reddit has two problems:
1/ Size. Reddit has 51M daily active users (DAU) — which sounds like a lot until you compare it with tech giants Facebook (2B DAU) and Snap (375M DAU).
2/ Usage: Adults spend an average of 24 minutes per day on Reddit vs. Facebook (30 minutes) and TikTok (56 minutes).
If markets continue recovering at this pace, we might finally get to see some tech IPO action.