If investors agree to pay its high-end range, Reddit’s valuation should hit around $5.4 billion. Given that Reddit is an unprofitable, long-established social media company, and one that depends on advertising, that feels a tad expensive. Unprofitable Snap, for example, is currently worth 4.34x its revenues while highly profitable Meta is worth 9.86x. Reddit’s game plan for AI is one good reason why it’s pricing its shares closer to Meta than Snap.
Source: Reddit’s planned IPO share price seems high, unless you look at its AI revenue | TechCrunch