Reddit Is Going Public Soon. Here's Why That Could Be Good News for Investment Banks.
Reddit, which claims to be "the front page of the internet," will be making its public debut as a stock on March 21. It will be the first significant tech initial public offering (IPO) of the year and could be an important test for prospective companies looking to go public. It'll also be an important barometer for investment banks and could signal an intriguing investing opportunity.
Image source: Getty Images.
Over the past few years, IPOs have become quite scarce as companies grappled with rising interest rates and challenging market conditions. In March 2022, the Federal Reserve began aggressively raising its benchmark interest rate to dampen inflationary pressures that were beginning to emerge. Over the next several months, the benchmark federal funds rate rose 525 basis points, major stock market indexes sold off, and newly listed publicly traded companies struggled especially.
Source Fool.com
