ApeVue Data: Reddit IPO?

Weekly Edition & Stock Spotlight

January 19, 2024

Hill Chart Shape

ApeVue50 Index & Sectors 1Y Performance

Most Active Names Performance

* Price (USD) estimated based on secondary market activity observed by ApeVue. Valuation is estimated based on said price and share count from state filings and/or news in the public domain. Note that share count in calculations may change as new filing documents are obtained.

ApeVue50 Privates versus Public Benchmarks/ETFs

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Public v. Private (12mo)

The ApeVue50 tracks the performance of the 50 most active private names observed in the secondary market. It is an equal-weighted index, rebalanced on a monthly basis.

This rebalancing of constituents over time gives way for more active names to participate in what we observe as "market performance," and in a more appropriate manner than static selections and weightings criteria.

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Stock Spotlight - Reddit
Sectors

Entertainment Social

Headquarters
San Francisco, California, USA
CEO
Steve Huffman

Reddit is an online platform that is a central hub for user communities of "Redditors" who create, share, and discuss content across a diverse range of topics. The users can share content by posting stories, links, images, and videos, comment on these posts, and vote by upvoting or downvoting.

The company’s business model is built on these key revenue streams: advertising, a premium subscription service, awards, and API usage fees. A significant portion of Reddit's income comes from advertising, which notably scaled up in recent years. In 2021, the company’s ad revenue exceeded $350 million. Their premium subscription is about $6 per month, allowing users to have a VIP experience.

Reddit is reportedly gearing up for a potential Initial Public Offering (IPO) in March 2024 as per a recent report from Reuters. Click here to see more.

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Reddit’s Revenue and Growth Model

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Is Reddit Ready for IPO?

Reddit is reportedly seeking to launch IPO.

  • According to Reuters, Reddit intends to offer approximately 10% of its shares in its upcoming IPO, although a specific valuation target for the offering has not been established yet.
  • Reddit's IPO, set to be the first for a social media company since Pinterest in 2019, could potentially rejuvenate the IPO market.
  • After only two major startups, Instacart and Klaviyo, went public in last year there's an anticipation that IPO activity might pick up in 2024 .

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Competition

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Reddit faces significant competition within the social media industry. Large technology firms continue to focus on individual experiences and personal connections, and predominantly control this arena.

However, smaller companies have also made a mark by prioritizing casual and open-ended conversations. Distinctly from traditional large tech firms, Reddit values anonymity within the platform.

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Click here to read the latest report on Reddit by Contrary Research

Click here to read the full report on Reddit by Sacra

Reddit's Financial Data

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Reddit 1Y

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Reddit 90D

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Reddit 30D

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Series F Valuation

<span class="date">2021-08-11</span>
<span class="value">$10B</span>

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Implied Valuation

<span class="date">2024-01-19</span>
<span class="value">$4.64B</span>

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Change Since Last Round

<span class="date">2021-08-11 → 2024-01-19</span>

<span class="value red">-53.56%</span>

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Funding Round in USD

ApeVue’s ‘Data Room’

Entertainment Sector: Average 1Y Volatility

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ApeVue highlights six of the most actively traded Entertainment companies in the institutional secondary market.

Animoca Brands was the most volatile from 2023-01-16 until 2024-01-15 both in terms of average volatility of composite price and underlying contributions at 52% and 93% respectively.

ByteDance and Epic Games were the least volatile at 10% in terms of average volatility of composite price and MasterClass was the least volatile at 21% in terms of average volatility of underlying contributions.

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90D Bid:Ask Volume Ratio

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ApeVue highlights bid:ask volume ratios for the past 90 days from 2023-10-18 until 2024-01-15:

  • Among the selected companies, all but Animoca Brands have demonstrated more than 50% offer volume.
  • Notably, 100% of MasterClass and Spotter’s total volume was for offers. Conversely, 60% of Animoca Brands’ total volume was for bid.

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30D Change in AV’s Price

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From 2023-12-17 until 2024-01-15, AV’s composite price has increased for Animoca Brands by 16% and decreased for Epic Games by 8%.

The remainder of the active companies in the entertainment sector show a negligible change in composite price.

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