The long awaited Reddit IPO took place this week.
The IPO was completed at a price of $34, but by the start of the first day of trading the price was significantly higher. On the first day, shares traded between $45.05 and $57.80.
What will happen next? Will the shares fall below the initial IPO price of $34 or will they rise to double the IPO price and reach $68?
The source for this market will be Google's price page here:
https://www.google.com/finance/quote/RDDT:NYSE
If that shows a low below $34.00 or a high above $68.00 on any day, the market will resolve on that basis.
🏅 Top traders
| # | Name | Total profit |
|---|---|---|
| 1 | Ṁ476 | |
| 2 | Ṁ140 | |
| 3 | Ṁ65 | |
| 4 | Ṁ35 | |
| 5 | Ṁ24 |
Reddit's shares have bee trading above $68 today (they briefly went up past $74) so this market resolves to above $68.
If you're like me and you thought that Reddit seems pretty overpriced at IPO, you'll be surprised at this development...
What happens next? Will it reach triple the IPO value? Or will it fall back below the initial value?
@SimonGrayson it would be interesting to have a follow up question, for example regarding reddit's stock price at the end of the year.