Reddit has made its long-awaited market debut Thursday, closing the day 48.4% higher.
Reddit priced its IPO at the top end of the $31 to $34 range, valuing the company at $6.4 billion.
The highly successful market debut is the latest sign of improving investors' appetite for IPOs after very soft two years.
When assessing potential upcoming IPOs, analysts at Sichenzia Ross Ference Carmel told Investing.com last week that Reddit is one of “the only viable candidate,” although they noted the social media platform faces “many hurdles,” including its valuation.
“It has previously offered stock privately at a $10 billion valuation. It now plans to offer stock to its users rather than institutions, which will pose additional trading risks and volatility,” the analysts told Investing.com.