Stock ends trading at 50.44 per share
IPO priced at top end of range

March 21 Reuters Social media platform Reddit39;s shares ended their first day of trading in New York up 48, signaling that investor appetite for initial public offerings of promising yet lossmaking companies could be returning.

Reddit, which has not turned an annual profit since launching in 2005, lured investors by positioning its content as training grounds for artificial intelligence AI programs. Reuters reported last month that Reddit struck a data licensing deal with Google worth about 60 million a year.

While Reddit still relies on advertising for the vast majority of its revenue, it touted AI in its IPO marketing roadshow as an area of growth. It also disclosed last week that the U.S. Federal Trade Commission is looking into its AI data licensing deals.

At the core we are a growth company. Achieving our mission means that we want to grow users and community, said Jen Wong, Chief Operations Officer at Reddit.

Shares of the San Franciscobased company opened at 47 on the New York Stock Exchange on Thursday after pricing at 34 in the IPO, the top of the company39;s indicated price range. They ended trading at 50.44.

The IPO valued Reddit at 6.4 billion, and the company and its selling shareholders raised 748 million. Reddit was valued at 10 billion in a private fundraising round in 2021, and the strong stock market reception indicated that the company may not have needed to curb its…