Reddit IPO: Analyst discusses $6.4B valuation, AI, and profitability challenges

Social media giant Reddit is gearing up for its IPO planned for March 21. The company is looking to raise $748 million and is targeting a valuation of up to $6.4 billion, with prices per share ranging between $31 to $34. The company plans to allocate close to 2 million shares to its active users.
PitchBook Senior Venture Analyst Kyle Stanford joins Yahoo Finance to discuss Reddit's upcoming IPO and the buzz surrounding possible investments from users.
Compared to other tech companies, Stanford explains that Reddit is taking an idiosyncratic approach by involving its users: "[Reddit] was built off its communities. So if you turn your back on that, that creates a very negative perception from those users that you are selling their information or selling their data off of and are generating all these discussion boards and building their reason for growing ad revenue."
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