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Reddit has filed to go public finally this will be the first major Tech IPO of the year and the first social media IPO
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since Pinterest in 2019 if you can believe it the the platform's bankers are looking for a valuation of at least
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$5 billion not too big it has 73 million daily active users and one of the most visited websites in the US in an unusual
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move Reddit will reportedly offer 75,000 power users the chance to buy shares at
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the IPO price I think other companies have done similar things first off Reddit has been around since 2005
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um this will be a test for IPOs in general the advert their business is largely advertising um and uh now they
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just there's and the probably the most controversial thing is this licensing a data licensing agreement they just
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announced a $60 million deal with Google last week which I think people inside who use the company are not happy about
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um so any thoughts talk me talk to me about this IPO well first off everyone's sort of waiting for the market to thaw
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the IPO market and it probably is beginning or the atmospherics are lining up just because of the acceleration in
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the markets the markets are reaching new highs and Nvidia has totally inspired kind of the animal spirits appear to be
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returning and there's several IPOs lined up and everyone's waiting for one to really pop whether it's going to be
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Reddit or Shen which is kind of the biggest now the biggest fast fashion company in the world I like Reddit a lot
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I actually think this IPO could be a a real winner because I mean the first thing I did just very basic I type in
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most traffic sites in America number one is Google number two is YouTube number three Reddit and number my kids use it
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and number four is Facebook number five Amazon number six PornHub number seven Wikipedia and number eight Yahoo and my
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attitude is Yahoo over Twitter it's not crazy I'm a shareholder in Yahoo probably but my thesis around Yahoo is
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the same as my thesis around Reddit and is remember those charts I always used to put out 10 15 years ago saying
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newspapers command 7% of people's attention but they get 18% of the advertising Revenue whereas the internet
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is 30% of people's attention but only 9% of money and over time the two calibrate
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they two they normalize they come in line with each other and so when you look at the most traffic sites in the
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world they're usually you know one plus trillion dollar companies and so this company is going to go out supposedly at
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a valuation of 5 billion and it's the third most traffic site in the United States enough said it's a bargain they
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should be able to they should be able to figure this out still rely on Advertising quite a bit like that that
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if you look at the numbers it's it's a really heavy and so they're they're subject toes of the market I get it I
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get it you're right so does Google that's all this is this is a much smaller company like I've interviewed at
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CEO Sam uh I mean um uh Steve Huffman quite a bit as I like like him he's he was really first on figuring out content
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moderation they of course had a terrible back and you know around some really heinous sites there um on the site um
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you know it's always been a little bit of a Shaggy Dog of a social media they did a $60 million deal they have a
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little bit of that AI spice on their on their you know on their on their meal they got a 60 million bucks I think
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that's going to go up or they might take the content inhouse this is the risk they can't be
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Pinterest and snap that have kind of gone sideways and always end up being the little engines that could what I was
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thinking yeah but if they if they continue to be one of the most traffic sites in the world they can put an AI
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spin on this at five bill I mean let me just be transparent I'm going to try and
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get stock in this thing I think this thing I think this could be either Sheen or Reddit are going to set the IPO
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Market on fire I think Sheen is a is a retailer though of course right but Shen I mean it's another one we'll talk about
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this another day but Sheen is now the largest fast fashion company in the world yeah and one of these one or both
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of these is going to have a big pop because the market the IPO Market has been so thaw that I bet these get priced
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fairly conservatively and there's so much money on five billion is low is very low
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that's nothing and that's the problem is a lot if it sticks at five billion it's
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not going to get a lot of anal coverage no one really cares about million companies do make money as I I think the
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money I think they're cash dep positive I believe um what's interesting here's one that that that 9% of the voting
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power at Reddit open a i CEO Sam Alman there he is pops up he invested um at a time when they were struggling a little
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bit $60 million in shares because they were going to go IPO and then they weren't and then they were sort of owned
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by K nask and they weren't you know what I mean they went through a lot this company has gone through a lot of
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iterations yeah um and you know sort of coming out maybe they should be bought this people thought about buying them
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then there was the controversy over those terrible the Trump forums and everything else and then I had an
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interview with Steve and he said he was the first CEO to say to me about content
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moderation you know we were very they're very they were the fir they were you know the the the Free Speech wing of the
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Free Speech party right those gu of of the people I interviewed but he was also the first person who said to me some
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people are just malignant actors and we're going to throw them out and nobody had ever said that and they had no
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resources to do it and that was a big deal when he said that to me I was sort of like this the company with the least
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ability to do anything about it was articulating something that just made perfect sense right and this was a
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company that was so free speechy you couldn't I mean they and they got in trouble for it
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very I share tell me about Altman what do you think about Altman just curious first his investment gets this thing at
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least another billion dollar in valuation because it's more of that AI sprinkling it's more that AI pixie
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everybody thinks Sam Alman maybe with the exception of Jensen Hong is the smartest person in the world and he's an
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investor and a shareholder here one of these companies is going to going to have a triple digit opening day uh in
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the IP Market we're going to be off the races I like interesting goodness I think this is a great I like it yeah I
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like it a lot and only that Reddit it's a global brand people know it it is it's
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a global brand what how many Global Brands can you pick up for five billion bucks right not just that it's a youth
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brand too my kids I was surprised they use two things YouTube quite a bit but Reddit just as much it's a really and
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they don't use it for chitchatting they use it for videos and consumption which they don't like they don't like Tik Tok
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I know it sounds crazy but they find it too performative and they love they think Reddit feels more real um it's an
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entertainment vehicle for them so you know it's a a really interesting hack that I didn't discover type in your
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search and then add the word Reddit and see what comes up oh really interest there's a whole thing on why we're so
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annoying on Reddit just do you know that oh really they try they vote about which
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one of us is more annoying that that's a tough one that's not an easy call No but
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really that's a photo finish I'm insufferable but interesting you are the most annoying I'm sorry to tell you but
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oh you already decided is that Reddit I no I looked at it I'm looking at Reddit I like I there's there's whole sections
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talking about oh good we're back for those of you wondering we could go 10 minutes without talking about us tell me
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about your book Cara no no no but let me tell you I went there and I it popped right up it was I was looking have you
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heard about our therapy session Jesus this really is a Scot love that people love that it is Scot and Care show but
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I'm saying it was really interesting it was it's just endlessly interesting information but there's a whole section
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of whether we're annoying or not that's well the answer is yes yes but but as long as we're entertaining that's fine
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that's what I said I was like I almost popped in and went hey girls Reddit watch out I'm I'm calling it now redit
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Reddit first first trade first trade way up