Fidelity deepens valuation cut for Reddit: $10B to $5.5B

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by provoko

Fidelity Blue Chip Growth Fund valued its holdings in Reddit at $15.4 million as of May 31, according to the fund’s monthly disclosure released Friday. That’s down 7.36% from the $16.6 million mark at April’s closure and altogether a slide of 45.4% since its investment in August 2021. The updated share value suggests a $5.5 billion valuation for Reddit.

It was $10B in Aug 2021.

See also  Reddit users allege bias, noting reduced diversity in platform perspectives shared.

Originally Reddit wanted to go IPO for $15B, which it was valued around that in late 2021. Obviously a lot has happened since then, so it’s doubtful they’ll get over $5B.

source

Seeing how Reddit’s revenue is over half a billion and typically IPOs like that will IPO around $2B; growth is another factor which has slumped down to 36%, so perhaps we won’t ever see a Reddit IPO until they get their revenue higher & revenue growth back up.


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