Google Inverse gold etf is believed to have paid Reddit $60m for the right to scan almost two decades of discussions to make its AI more human-like – and Reddit has said it has agreed licensing deals worth more than $200m over the next two to three years. That is because companies like OpenAI, the developer of ChatGPT, will pay for data of those random conversations. Company co-founders Steve Huffman and Alexis Ohanian — also the husband of tennis superstar Serena Williams — both left Reddit in 2009 while Conde Nast was still in control, only to return years later. In the recent documents filed for its revived IPO, Reddit attributed the losses to a fairly recent focus on finding new ways to boost revenue. “The big challenge, of course, is not just user growth, but the related monetization,” Kessler said.
During the earnings call, Huang made clear that the first chips are already “in the hands of all of adbe stock forecast, price and news Nvidia’s major partners” and will soon be shipped to end users — companies like Meta and Microsoft operate massive AI data centers. The data set you see above was posted on social media platform X in June 2023 by the researchers at Bespoke Investment Group. It shows the calendar-day length of every bear and bull market in the benchmark S&P 500 dating back to the start of the Great Depression in September 1929. If they lose the bet, that’s called a short-squeeze, and they often hedge their losses by buying more shares of the company they bet against. In the case of GameStop and other stocks targeted by WSB, traders keep buying options, forcing the investors selling those options to hedge their bets by buying up GameStop stock. Even though the company plans to sell shares, Advance is not exiting its investment in Reddit.
No Pump & Dumps/Low Volume Stocks
- It also marks the first social media company to go public in years, and its performance could be a signpost for other companies considering IPOs.
- ChatGPT will integrate information from Reddit’s user-generated content.
- The US Federal Trade Commission (FTC) is already looking into how Reddit licences its data for AI models – generally speaking, regulators don’t like it when big technology firms sell data generated by users.
- Including the current bull market rally, just over half (14 out of 27) of all bull markets for the S&P 500 have lasted longer than the lengthiest bear market.
- For example, in Reddit’s case, it is in the Communication Services sector.
Early trading results do not always augur a trouble-free public market life, however. Many 2021-era tech IPOs have lost value since their early, hot debuts. Still, charts that point up are more bullish than charts that do not.
Tencent Continues Stretch of Selling Reddit Shares
Thursday’s opening debut valuation of $9 billion, for example, is still far below the $1.2 trillion market value boasted by Meta Platforms — whose biggest social media service Facebook was started just 18 months earlier than Reddit. It’s been a rough few years for the IPO market — and successful IPOs typically beget other successful listings. However, one has to ask whether the stock price has moved ahead of its financials. In the first nine months of 2024, Reddit reported revenue of $872 million, an increase of 57% from the same period in 2023. Consequently, its loss for the first three quarters of 2024 came to $555 million versus $106 million in the year-ago period. The company capitalized on this popularity when it launched its initial public offering (IPO) in March.
Google cut a deal with Reddit for AI training data
Not long after it was born, Reddit was sold to magazine publisher Conde Nast for $10 million in deal that meant the company didn’t need to run as a standalone business. Even after Conde Nast parent Advance Magazine Publishers spun off Reddit in 2011, the company said in its IPO filing that it didn’t begin to focus on generating revenue until 2018. Reddit has never profited from its broad reach while piling up cumulative losses of $717 million. That number has swollen from cumulative losses of $467 million in December 2021 when the company first filed papers to go public before aborting that attempt. Per the usual IPO custom, the remaining shares are expected to be bought primarily by mutual funds and other institutional investors betting Reddit is ready for prime time in finance. The social media industry is bracing for a potential shakeup if a bill that could see TikTok banned in the United States — which has already passed the House — progresses further.
At its peak, shares of the stock had a market cap of about $10.9 billion. The magazine conglomerate disclosed plans to sell 10 million shares of its stake with a market value of $1.58 billion, according to a filing with the Securities and Exchange Commission (SEC) after markets closed Thursday. ChatGPT users will potentially discover content and communities, which could grow Reddit’s active user base. In the company’s first quarter of 2024, it added nearly 10 million daily active users.
As you’ll note from the table, the average what does a python developer do S&P 500 bear market decline is only 286 calendar days, roughly 9.5 months. This is consistent with downturns in the U.S. economy resolving quickly. A considerably more encompassing valuation tool, and the metric currently making history, is the S&P 500’s Shiller P/E ratio, also referred to as the cyclically adjusted P/E ratio or CAPE Ratio.