Why I Wouldn't Touch Reddit Stock With a 10-Foot Pole
One of the most anticipated initial public offerings (IPOs) of 2024 was Reddit (NYSE: RDDT), a social media company that is best known for its subject-matter forums, called subreddits. It's a landing page for people interested in researching a topic but also looking for user feedback and commentary.
In general, IPO stocks tend to be surrounded by excitement. And given Reddit's popularity, the company's market debut has garnered a lot of scrutiny. Let's dig into whether or not the stock is a good buying opportunity and assess some of the risks.
The social media realm is fiercely competitive. But with 73 million daily active users, Reddit has proved it can reach critical mass and spur user engagement.However, it doesn't have as broad a reach when it's benchmarked against other such platforms.
Source Fool.com
