Business

Social media company Reddit soars to $9bn valuation in Wall Street debut

Published

8 months ago

March 22, 2024

Harry Miller

San Francisco-based social media platform’s shares close at $50.44 in long-awaited initial public offering.

Shares of Reddit soared nearly 50 percent as the social media platform made its long-awaited stock market debut.

Investors pushed Reddit’s value close to $9bn after it began trading on the New York Stock Exchange on Thursday, with the company’s share price peaking at $57.80 before closing at $50.44.

Reddit, founded in 2005 by entrepreneurs Steve Huffman and Alexis Ohanian, had priced its initial public offering (IPO) at $34 a share.

The strong market debut makes Reddit’s IPO one of the biggest by a social media company so far, although the platform’s market value is dwarfed by rivals such as Meta, the owner of Facebook and Instagram, which is priced at $1.2 trillion.

Reddit’s hot launch also bucks the recent trend of waning enthusiasm for tech IPOs after underwhelming debuts by Arm, Instacart and Klaviyo.

San Francisco-based Reddit previously filed for an IPO at the height of the tech stock boom in 2021 but delayed the move after the market cooled.

Reddit’s IPO will test the company’s ability to find a viable business model after a tumultuous 20-year history marked by continuous losses and management upheaval.

Despite boasting more than 70 million daily users, the platform has yet to turn a profit and has racked up losses totalling $717m.

Reddit chief executive Huffman said shortly after the platform’s market debut on Thursday that its advertising business was showing “a lot of momentum” and there was “really no constraint” on how big it could be.

“What’s special about Reddit is whatever you’re into, whatever you’re going through, whether you’re getting into college, getting your first job, relationships, ups and downs, whatever health malady you have, and everybody’s got one, it’s all on Reddit,” Huffman told CNBC.

“And so, Reddit is all about context and interests. So, literally, every brand’s customers are on Reddit somewhere.”

Reddit’s notable investors include OpenAI CEO Sam Altman, who owns 12.2 million shares, according to IPO disclosures.

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Cineplex reports $24.7M Q3 loss on Competition Tribunal penalty

Published

1 hour ago

November 6, 2024

Anne Joseph

TORONTO – Cineplex Inc. reported a loss in its latest quarter compared with a profit a year ago as it was hit by a fine for deceptive marketing practices imposed by the Competition Tribunal.

The movie theatre company says it lost $24.7 million or 39 cents per diluted share for the quarter ended Sept. 30 compared with a profit of $29.7 million or 40 cents per diluted share a year earlier.

The results in the most recent quarter included a $39.2-million provision related to the Competition Tribunal decision, which Cineplex is appealing.

The Competition Bureau accused the company of misleading theatregoers by not immediately presenting them with the full price of a movie ticket when they purchased seats online, a view the company has rejected.

Revenue for the quarter totalled $395.6 million, down from $414.5 million in the same quarter last year, while theatre attendance totalled 13.3 million for the quarter compared with nearly 15.7 million a year earlier.

Box office revenue per patron in the quarter climbed to $13.19 compared with $12 in the same quarter last year, while concession revenue per patron amounted to $9.85, up from $8.44 a year ago.

This report by The Canadian Press was first published Nov. 6, 2024.

Companies in this story: (TSX:CGX)

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Restaurant Brands reports US$357M Q3 net income, down from US$364M a year ago

Published

1 day ago

November 5, 2024

Anne Joseph

TORONTO – Restaurant Brands International Inc. reported net income of US$357 million for its third quarter, down from US$364 million in the same quarter last year.

The company, which keeps its books in U.S. dollars, says its profit amounted to 79 cents US per diluted share for the quarter ended Sept. 30 compared with 79 cents US per diluted share a year earlier.

Revenue for the parent company of Tim Hortons, Burger King, Popeyes and Firehouse Subs, totalled US$2.29 billion, up from US$1.84 billion in the same quarter last year.

Consolidated comparable sales were up 0.3 per cent.

On an adjusted basis, Restaurant Brands says it earned 93 cents US per diluted share in its latest quarter, up from an adjusted profit of 90 cents US per diluted share a year earlier.

The average analyst estimate had been for a profit of 95 cents US per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Nov. 5, 2024.

Companies in this story: (TSX:QSR)

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Electric and gas utility Fortis reports $420M Q3 profit, up from $394M a year ago

Published

1 day ago

November 5, 2024

Anne Joseph

ST. JOHN’S, N.L. – Fortis Inc. reported a third-quarter profit of $420 million, up from $394 million in the same quarter last year.

The electric and gas utility says the profit amounted to 85 cents per share for the quarter ended Sept. 30, up from 81 cents per share a year earlier.

Fortis says the increase was driven by rate base growth across its utilities, and strong earnings in Arizona largely reflecting new customer rates at Tucson Electric Power.

Revenue in the quarter totalled $2.77 billion, up from $2.72 billion in the same quarter last year.

On an adjusted basis, Fortis says it earned 85 cents per share in its latest quarter, up from an adjusted profit of 84 cents per share in the third quarter of 2023.

The average analyst estimate had been for a profit of 82 cents per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Nov. 5, 2024.

Companies in this story: (TSX:FTS)

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