Posted by & filed under Financial Reporting and Analysis, Student life.

Description: Online message board site Reddit, with its 70 million users, is planning to “go public” in an initial public offering (IPO). This is despite the fact that Reddit has been a consistent money loser since its launch in 2005, counting up losses of US $90.8 million in 2023 and US $158.6 the year before. In an interesting twist from a typical IPO where large, institutional investors rule the day, Reddit does intend to reserve some of the share issue for its loyal users.

Date:  February 23, 2024



Discussion points:

1) How many of your classmates are Reddit users? What is the best thing about the platform?

2) How can a tech company that has never made a profit continue to survive for twenty years?

3) Page 11-9 of Wiley’s Understanding Financial Accounting discusses the subject of an IPO. What is the process it outlines for an initial public offering on a stock exchange?

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