The Investing for Beginners Podcast - Your Path to Financial Freedom

Bird's Eye View: Reddit IPO

May 12, 2024

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Welcome to a fascinating new episode of The Investing For Beginners Podcast! Today, your hosts Andrew and Dave will dive into the much-anticipated IPO of Reddit. As seasoned investors who typically steer clear of IPOs, they find it intriguing to unpack Reddit’s introductory documents to better understand its financial health and strategic direction. Throughout the episode, they'll explore Reddit’s user engagement and compare its financial metrics, like the Average Revenue Per User (ARPU), with those of other social media giants such as Facebook and Twitter. Despite the challenges in evaluating a fresh IPO like Reddit, they’ll dissect the S-1 document, spotlight the company's R&D allocations, and discuss the implications of its user base growth potential. Whether you’re a potential investor or just curious about Reddit’s next steps in the public sphere, this episode will equip you with key insights into making more informed investment decisions. Stay tuned as Andrew and Dave weigh the risks and opportunities that come with investing in an IPO, all while emphasizing the importance of a margin of safety.

00:00 Investing for Beginners podcast analyzes Reddit's recent IPO.

03:29 IPO: Company goes public, anyone can buy.

08:48 Public companies need proven track record, growth runway.

11:17 Reddit offers intellectual engagement, less aimless scrolling.

15:29 Comparing Facebook and Reddit's business monetization strategies.

18:46 Concerns about Reddit's future growth and profitability.

20:47 Muted response to Reddit going public discussed.

23:29 Good revenue growth, high R&D spend. Concerns.

29:20 Reddit has loyal user base, lacks investor appeal.

32:21 Discussion on IPOs, Reddit's IPO, and investment.

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