Kantrowitz sees Reddit as ‘smaller, more volatile’ Twitter following IPO announcement

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on Feb 23, 2024
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  • Reddit to debut on the New York Stock Exchange in March.
  • Alex Kantrowitz is not particularly excited about Reddit IPO.
  • Reddit ended last year with close to $91 million in loss.

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Reddit is in focus this morning after Alex Kantrowitz – the founder of “Big Technology” likened it to a “smaller, more volatile” Twitter.

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Reddit to list on the NYSE under ‘RDDT’

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His comment arrives a day after Reddit filed to list on the New York Stock Exchange under the ticker symbol “RDDT”.

But Kantrowitz is dovish on its initial public offering (IPO) as it has “all the problems of Twitter and none of the size”.

He’s not very impressed of Reddit also because it lacks user growth. The forum social media platform has managed 72 million daily active users only since its inception some 19 years ago.

Note that Sam Altman – the chief executive of OpenAI has a close to 9.0% stake in Reddit that recently reported a $91 million loss for 2023.

Why else is Kantrowitz dovish on Reddit?

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Earlier this week, Google announced an agreement with Reddit that enables the tech behemoth to use its data for the purpose of training its AI models.

Alex Kantrowitz is dovish also because it’s not very convenient to advertise on Reddit. On CNBC’s “Squawk Box”, he said today:

They have to speak in Reddit lingo and use Reddit phrases and put it in the Reddit format. It’s a pain for such a small network. Most advertisers don’t want to do that.

Last night, Reddit confirmed that a bunch of its most active users will be able to participate in its initial public offering. $RDDT will debut on the NYSE in March.  

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