Cathie Wood parks over $500 million in Reddit stock

March 23, 2024 01:53 PM PDT | By Invezz

Cathie Wood parks over $500 million in Reddit stock — Image source: Invezz

How many shares of Reddit did she buy?

The forum social network ended the week at $46 per share after pricing its initial public offering at $34 only – signalling solid demand for new tech stocks.

Part of that demand came from Cathie Wood who scooped up close to 10,000 shares of Reddit on their first day of trading; split across two of her flagship funds – the Next Generation Internet ETF (ARKW) and the Fintech Innovation ETF (ARKF).

The influential investor spent a total of $503 million on $RDDT that Alex Kantrowitz of Big Technology sees as a “smaller, more volatile” Twitter (find out more).

Reddit Inc is worth well over $7.31 billion at writing.

$RDDT is committed to turning profitable

Reddit reserved about 8.0% of the IPO for its active users and moderators as the “best investors of $RDDT are people who use Reddit”.

On CNBC’s “Squawk on the Street”, Steve Huffman – its chief executive also confirmed that the California-based company was profitable in the second half of last year and “grew revenue three times as fast as cost” in 2023.

He’s reiterated profitability as an “important milestone” and expressed confidence that Reddit is “getting closer” to it. Note that the social media has its gross margin in the high 80s.

On the flip side, however, $RDDT has not even touched 100 million in terms of global daily active users over the past 19 years versus Snap Inc at over 400 million in less than 13 years.

The post Cathie Wood parks over $500 million in Reddit stock appeared first on Invezz

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