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.
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.
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.