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Third Eye View on BloomZ Inc., What’s so Interesting About Them?Lately, there’s been quite a bit of market buzz around BloomZ Inc. (BLMZ), a Japanese-based company specialising in anime and game voice overs. They’re also tapping into the growing VTuber market and have plans to venture into the animation industry, further expanding their scope. From an investment perspective, BLMZ’s share price has seen a significant jump over the past two months. However, due to the recent market weakness over the war, BLMZ’s share price is affected too. On the fundamentals side, BloomZ is showing steady improvement in revenue while hovering around borderline profitability. This isn't too surprising, as the company is gradually building its revenue base and diversifying its income streams, positioning itself for future growth. For gamers, there’s an exciting development: BLMZ will be involved in the audio production for The Legend of Heroes: Kai no Kiseki - Farewell, O Zemuria , which is set to launch on PS4 and PS5. This project is expected to contribute significantly to BLMZ’s revenue in the coming quarters. The anime and gaming markets are undeniably growth industries with tremendous potential. While BloomZ is still in its early stages, the upside could be huge. Although it’s a bit of a bold comparison, think of Nvidia during its infancy—BLMZ could be on a similar path. In summary, BloomZ Inc. is definitely a stock to keep an eye on. I’ve personally taken a position, but as always, remember to DYOR when it comes to investing!
NASDAQ:BLMZLong
by HASHInvests200
ELPI - CUP WITH HANDLEI bought the stock today August 30, 2024 Reasons: 1. Low-risk entry point 2. Long base cup development 3. Formed a classic cup with a nice drifting handle 4. Newly IPO stock in late 2022 5. High relative strength 6. This is the second buy-able base since the IPO (first: vcp on 8/2/24) 7. More stocks start showing traction. Flaws: 1. Not really in a confirmed stage 2 uptrend 2. No big volume on the breakout I like to see if it can holds up and continue moving higher from here
IDX:ELPILong
by rifqonr
Helping Businesses Level Up Customer Experience HTCR , or HeartCore Enterprises, is making waves in the tech industry with its focus on customer experience management (CXM) solutions. The company offers software tools that help businesses improve how they interact with their customers, a market that has been growing rapidly due to the increasing emphasis on digital transformation. As more businesses move their operations online, HTCR’s solutions become crucial in helping companies manage customer journeys effectively. HTCR’s prospects look promising as demand for CXM solutions is expected to surge, particularly in sectors like retail, finance, and healthcare, where personalized customer interactions are becoming more important. Their platform supports everything from improving website user experiences to streamlining communication, helping businesses enhance customer satisfaction and loyalty. Moreover, HTCR has also been expanding into newer areas like process automation and content management, which further strengthens its market positioning. With the ongoing digital shift and rising demand for improved online engagement, HTCR has strong potential for future growth, making it a tech company to watch closely in the coming years.
NASDAQ:HTCRLong
by HASHInvests200
A Deeply Undervalued Play in Retail Tech Space (NASDAQ: AZ)A2Z Cust2Mate Solutions Corp, (NASDAQ: AZ) a cutting-edge retail technology company, is poised to redefine the shopping experience with its advanced smart cart technology. Operating in a market that is rapidly transitioning from traditional checkout systems to more sophisticated, data-driven tools, A2Z Cust2Mate finds itself at the forefront of this technological revolution. However, despite its robust prospects and impressive offerings, the company’s share price remains depressed, largely due to a lack of visibility among investors. As the market becomes more familiar with A2Z’s unique value proposition, there’s potential for a significant re-rating of its stock, which is currently deeply undervalued. The retail technology sector is undergoing a major shift, with the global market for smart retail systems projected to experience substantial growth in the coming years. As traditional self-checkout systems face increasing scrutiny due to inefficiencies and security concerns, smart cart technology is emerging as a viable and attractive alternative for retailers. A2Z Cust2Mate’s smart carts offer a seamless shopping experience that combines real-time item recognition, personalized promotions, and automatic checkout capabilities—positioning the company as a key player in the evolution of the retail industry. Globally, the demand for smarter retail solutions has been driven by the need for enhanced customer experiences and improved operational efficiencies. Retailers are investing in technologies that can reduce shrinkage (theft) and optimize in-store experiences. A2Z’s smart carts not only solve these pain points but also provide retailers with valuable data insights that can be leveraged for targeted advertising and better customer engagement. Peer Valuation A2Z Cust2Mate is currently trading at a significant discount compared to its peers in the retail technology space. Companies like Standard Cognition and Tracxpoint, which operate in similar sectors, have garnered valuations exceeding $1 billion. Meanwhile, A2Z’s current market capitalisation stands at around $45 million, a stark contrast that highlights the company’s deep undervaluation. Competitors like Caper, which was acquired by Instacart at an approximate 35x revenue multiple, further emphasize how much upside potential A2Z could have if properly valued. The primary reason for A2Z Cust2Mate’s undervalued stock price is a lack of visibility and awareness among investors. While the company has secured notable contracts and developed a highly innovative product, its achievements have flown under the radar. This lack of recognition in the market has led to a disconnect between the company’s intrinsic value and its current share price. Furthermore, the challenges posed by the broader market, such as delays due to geopolitical events and operational hurdles, have weighed on investor sentiment. However, as A2Z continues to execute on its growth strategy, especially with the upcoming release of its cost-effective third-generation smart carts, visibility is likely to improve. The company’s ability to secure larger, long-term contracts will serve as key catalysts for investor interest, helping to close the valuation gap. With a peer group that commands significantly higher valuations and a proven track record of securing contracts with major retailers, A2Z presents a compelling investment opportunity. As visibility increases and the company continues to deliver on its promises, there is considerable potential for the stock to re-rate to its true value. At a current price of around $0.86 per share, A2Z offers a significant upside, with a target price of $3.00 reflecting the company’s long-term growth prospects. For investors seeking exposure to innovative retail technology, A2Z Cust2Mate is a stock worth watching.
NASDAQ:AZLong
by HASHInvests200
Investment Thesis and Analysis of Heartcore, Inc. Heartcore, Inc. is positioning itself as a key player in Japan's growing digital transformation market. As companies across various sectors look to modernise and streamline their operations, Heartcore’s wide range of digital solutions is playing a crucial role in helping them adapt to new technologies. From content management and customer experience management to robotics process automation (RPA) and process mining, Heartcore has established itself as a versatile provider of innovative tools that are increasingly in demand. One of Heartcore’s standout services is its expertise in helping Japanese companies go public on the Nasdaq. With more companies aiming to expand internationally and raise capital, Heartcore’s role as a guide through the complex process of securing a Nasdaq listing adds a unique and valuable component to its business model. This positions Heartcore as a key partner for companies looking to expand their global reach, and it opens up additional revenue streams for the company itself. In addition to its Nasdaq advisory services, Heartcore offers a variety of digital solutions that cater to the needs of modern businesses. Its content management systems (CMS) and customer experience management (CXM) platforms help companies optimise their digital presence and enhance customer interactions. Heartcore’s RPA offerings, on the other hand, automate repetitive tasks and improve efficiency, allowing businesses to focus on more strategic activities. The company also offers process mining tools that provide insights into operational workflows, helping businesses identify inefficiencies and make data-driven improvements. Moreover, Heartcore has ventured into the world of 3D virtual reality with its VR360 service, offering immersive experiences that are particularly appealing to industries like real estate and tourism. This combination of services makes Heartcore a versatile player in the digital transformation space, and its solutions are well-positioned to meet the growing demand from companies looking to modernise their operations. The economic backdrop in Japan adds further support to Heartcore’s growth potential. The country’s economy has been showing signs of recovery, growing at an annual rate of 3.1% in the April-June 2024 period, driven by strong domestic demand and a significant increase in exports. This rebound creates a favourable environment for businesses to invest in digital transformation initiatives, which plays directly into Heartcore’s strengths. As consumer and business confidence grows, so does the likelihood that more companies will adopt Heartcore’s digital solutions. The current global environment of low interest rates is also a positive factor for Heartcore. In a low-rate setting, equities tend to perform well, particularly growth-oriented technology companies like Heartcore. Lower borrowing costs encourage businesses to invest in new technologies and digital tools, which supports Heartcore’s growth prospects. Given Heartcore’s strong positioning in the market, its diverse range of digital solutions, and the favourable economic and interest rate environment, we believe the company has significant upside potential. Our target price for Heartcore, Inc. is $1.50, reflecting the company’s growth prospects as it continues to expand its offerings and attract more clients, both in Japan and globally. With its unique combination of digital transformation expertise and Nasdaq advisory services, Heartcore is a company to watch in the coming years.
NASDAQ:HTCRLong
by HASHInvests200
A2Z Cust2Mate Receives Follow-Up Order from Franprix Following the launch of its smart carts at Franprix, A2Z Cust2mate receives a follow-up order for its smart carts from Franprix franchise stores TEL AVIV, ISRAEL – Sep. 27, 2024 – A2Z Cust2Mate Solutions Corp. ("A2Z") ("Company"), (NASDAQ: AZ)( NASDAQ:AZ )( FRA - WKN: A3CSQ), a global leader in innovative technology solutions, announced today that it received a follow-up order to deploy its new generation Cust2Mate 3.0 smart shopping carts at an additional 10 stores of Franprix in Paris, France in Q4, 2024. This follow up order is in addition to the successful deployment of smart carts at Franprix in Paris France in August, 2024, and is pursuant to the framework agreement with IR2S. See press releases dated September 20, 2023 and August 6, 2024. In addition to their advanced AI technology, self-scanning, and in-cart payments for a convenient “pick and go” experience, A2Z Cust2Mate’s generation 3.0 smart shopping carts include several new features including a shopping list which is automatically updated as the shopper progresses and advanced retail media capabilities such as in-store location based advertising and customized advertising targeting both, on cart and historic shopping purchases, as well as the shopping list and other triggers. Gadi Graus, CEO of A2Z Cust2mate, said: “We are proud and delighted to expand the deployment of our smart carts to additional Franprix stores; a testament to the superior shopping experience and customer satisfaction our smart carts provide to shoppers and the added value we bring to retailers.”
NASDAQ:AZLong
by HASHInvests200
HeartCore’s Go IPO Client, SBC Medical Group, Begins Trading Company anticipates Q3 2024 revenue to be between $19 million-$23 million and net profit to be between $4 million-$8 million NEW YORK and TOKYO, September 25, 2024- HeartCore Enterprises, Inc. (Nasdaq: HTCR) (“HeartCore” or “the Company”), a leading enterprise software and data consulting services company based in Tokyo, announced its Go IPO client, SBC Medical Group Holdings Inc. (“SBC”), has successfully commenced trading under the symbol “SBC” on the Nasdaq Global Market exchange. HeartCore was initially compensated through an aggregate $900,000 in initial fees and warrants to acquire 2.7% of SBC’s common stock, on a fully diluted basis, which equate to $17 million; in total, HeartCore generated $17.9 million in revenue from the SBC deal, with $17 million to be recognized in Q3 2024. As previously mentioned, of the $17.9 million, HeartCore sold $9 million worth of warrants to a Japanese financial institution during Q1 2024. The Company generated $5.64 million in net sales after paying a referral fee of $3.36 million to So Management Inc. for sourcing the lead. With SBC now publicly traded, HeartCore holds in total $8 million worth of SBC stock. Pursuant to the initial agreement, the Company assisted SBC throughout the listing process, including the audit and legal firm hiring process, translating requested documents into English, assisting in the preparation of documentation for internal controls required for an initial public offering, providing general support services, assisting in the preparation of the F-1 filing, and more. Additionally, HeartCore announced the following guidance range for Q3 2024: Revenue: $19 million-$23 million Net Profit: $4 million-$8 million “The SBC Medical Group deal is our biggest Go IPO deal to date, amassing a gross total of $17.9 million in total top line revenue for HeartCore,” said CEO Sumitaka Kanno Yamamoto. “Our team played a vital role in fostering the go public process for our treasured client, and we are very much looking forward to the progress and continued success SBC will create as a publicly traded company on the Nasdaq. “Furthermore, we are very encouraged by our forecasted financials for Q3 2024, as HeartCore is slated to have its strongest quarter in corporate history. Relative to last year’s revenue for the first nine-months ended September 30, 2023, of $18.5 million, we anticipate generating between $28.1 million and $32.1 million in revenue for the nine months ended September 30, 2024, with a significant profit. We expect this year will be HeartCore’s strongest by far, and we continue to stay laser focused on providing value for our Go IPO clients, in addition to our enterprise software clients.” NASDAQ:SBC
NASDAQ:HTCRLong
by HASHInvests200
A2Z and Nayax Capital Sign Framework Agreements Tel-Aviv, ISRAEL, September 25, 2024 – A2Z Cust2Mate Solutions Corp. ("A2Z") (NASDAQ:AZ)(FRA - WKN:A3CSQ), a global leader in innovative technology solutions, today announced it has signed global framework agreements with Nayax Capital, (“Nayax Capital) , whereby Nayax Capital will enable financing for the sale or lease of Cust2Mate smart carts enabled with Nayax’s complete solution. This announcement is further to the company’s press release on September 10, 2024 announcing the formation of a joint venture with Nayax Ltd. to mutually promote the sales of A2Z Cust2Mate’s smart cart solution integrated with Nayax’s payment solution for on-cart payments. The joint venture announcement can be read here. Under the terms of the framework agreements, Nayax Capital will enable retailers to pay or lease the Cust2Mate smart carts that are sold as part of a comprehensive solution, which includes Nayax’s payment, management and loyalty solution, in monthly installments. The framework agreements cover the A2Z Cust2Mate’s smart carts, charging solutions, and IT infrastructure upgrades, as needed, for customers around the world including Europe, North America and Latin America. Any financing extended is subject to individual terms and conditions and approval by Nayax Capital and is non-recourse to A2Z. Gadi Graus, CEO of A2Z, stated, “We have teamed up with Nayax Capital to help merchants grow by making it easier for retailers around the globe to adopt our smart cart solution. With a readily available financing option, approved retailers can move quickly to implement our smart carts and begin realizing tangible benefits to their operations and improve the shopping experience for their customers.”
NASDAQ:AZLong
by HASHInvests200
HeartCore Enterprises Inc. (NASDAQ: HTCR) | A Rising Player in DHeartCore Enterprises Inc. (HTCR) is a global digital transformation company offering businesses cutting-edge software and services to help them go fully digital. Whether a company needs to upgrade its digital infrastructure or enhance operational efficiency, HeartCore provides the tools and expertise to get the job done. A Global Reach with Strong Foundations Founded in Japan, HeartCore has expanded its operations globally, with subsidiaries in the USA, Canada, the Netherlands, India, and Vietnam. This global presence allows them to serve a wide range of clients, helping businesses worldwide embrace digital transformation. Their Vietnam-based subsidiary, HeartCore LUVINA Vietnam, specialises in offshore development of CMS (Content Management System) products, which further broadens their service offerings. Financial Highlights HeartCore’s strong financial performance stands out, especially when considering its year-over-year revenue growth of 147.73% in 2023. The company is clearly on an upward trajectory, with its current stock pivot at $0.69, and resistance levels at $0.82 and $0.95, suggesting potential further growth. Investors looking for stability will also be pleased with HeartCore's 5.80% dividend yield (TTM), making it an attractive option for those seeking returns along with growth. HeartCore Financial and IPO Services Aside from its core digital transformation business, HeartCore has diversified its offerings through HeartCore Financial, which provides Nasdaq IPO consultation via its "Go IPO" service. This service helps businesses navigate the complex process of going public, leveraging HeartCore’s own experience as a Nasdaq-listed company. By guiding other companies through IPOs, HeartCore has created an additional revenue stream and built strong relationships in the business world. Why HeartCore? For investors, diversification is key, and HeartCore exemplifies this strategy with its mix of digital transformation services and financial consulting. Their ability to offer both technical and financial solutions gives them a competitive edge, making them resilient to market fluctuations. With a strong client base, diverse revenue streams, and a growing global presence, HeartCore is well-positioned to continue its upward trend. In summary, HeartCore Enterprises is a company on the rise, offering innovative digital solutions across the globe while helping other companies succeed in the Nasdaq IPO journey. With strong financials and a global footprint, it’s definitely a stock worth watching for both growth and income-focused investors.
NASDAQ:HTCRLong
by HASHInvests200
BloomZ Inc. (NASDAQ: BLMZ) and the Growing VTuber MarketSince its inception in December 2021, BloomZ Inc. has been at the forefront of the VTuber (Virtual YouTuber) management business, a rapidly expanding sector in the digital entertainment world. VTubers, or virtual characters animated using motion-capture technology, are essentially digital avatars that stream content in real-time, engaging audiences with their human-like expressions and interactions. Based on the prospectus, BLMZ manages a group of 18 VTubers under the name “Hoshimeguri Gakuen”, offering content like chatting, singing, and gaming across platforms such as YouTube and Fan Box. The VTuber Business Model? The VTuber industry thrives on its interactive, immersive experiences. For BLMZ, a large portion of revenue is generated through platform distributions from YouTube, BOOTH, and live-streaming events like VirtualThruLens, held by Avex Entertainment Inc. As of March 2023, BLMZ saw VTuber management account for 30.7% of its revenue, a notable increase from 12.8% the previous year. YouTube remains the dominant platform, contributing over 42% of BLMZ’s VTuber revenue, while BOOTH and Fan Box provide additional income through digital merchandise sales. Explosive Growth of the VTuber Market The global VTuber market is undergoing explosive growth. In 2022, it was valued at USD 4.4 billion and is expected to skyrocket to USD 27.6 billion by 2029, reflecting a CAGR of 35.6%. This rapid expansion is driven by several factors: · Advancements in Technology. Motion capture and animation technologies have made it easier than ever to create high-quality virtual avatars, allowing both creators and audiences to enjoy more immersive experiences. · Global Appeal. VTubers can transcend geographical and language barriers, attracting a wide range of audiences. Their appeal extends across various demographics, further driving engagement and revenue opportunities. · Rise of Virtual Influencers. The popularity of virtual influencers on social media platforms has made VTubers more mainstream, creating business opportunities with brand collaborations and content creation projects. As more brands realize the potential of VTuber partnerships, the demand for virtual talent agencies, like BloomZ, continues to grow. The Future of VTubers and BLMZ Role As the VTuber industry matures, companies like BLMZ are well-positioned to take advantage of this digital revolution. With more businesses recognizing the potential of virtual influencers, the VTuber market is expected to become a key player in the future of digital entertainment and brand marketing. For BLMZ, the combination of growing revenue streams, strong partnerships, and technological expertise ensures that it will remain a significant player in this rapidly expanding market.
NASDAQ:BLMZLong
by HASHInvests200
Interarch builder: IPO base breakout attempted after bottomInterarch Builder: did a ipo day high breakout attempt of 1318 and made a new 52 wk high of 1338. after results selling was seen and after that it bounced back again. if 1315 is broken again we will see 1400-1500 in short term. Gave revenue double guideline in next 3 years and stock pe is undervalued. Disclaimer: only for education purposes, no buy or sell recommendation. we are not sebi registered. always discuss first with your financial advisors
NSE:INTERARCHLong
by manideepcs024
CDSL | Flagpole | NSDL Files for IPO • NSDL has filed its DHRP, leading to market concerns that investors might shift their funds to NSDL, potentially affecting CDSL. (We'll be sharing a detailed comparison for NSDL and CDSL in the comments section below. Feel free to follow us for the updates.) Now CDSL: • In the last 13 months, it's formed a beautiful Flag Pole pattern. The breakout of which is already done. • The 1000 level + 50% Fibo level provided support during its momentum. • Volumes increased during the rally, which is a positive sign. • It faces a crucial resistance zone the break and sustenance of which will be necessary. • Now if you are worried about the funds flowing to NSDL, Remember what happened to BSE when NSE announced its IPO – it literally doubled in value. NSDL's valuation will play a crucial role in boosting CDSL's momentum. • Duopolies, like Ola and Uber, Airtel and Jio, Swiggy and Zomato, Amazon and Flipkart, tend to fare well. CDSL and NSDL too can coexist. • Do you know who else can and must Coexist? YOU and WE! Follow us for such interesting Case studies. Have Insights or Questions? Let us know in the comments below.👇 While you do that, how about a boost for some motivation 🚀 ⚠️Disclaimer: We are not registered advisors. The views expressed here are merely personal opinions. Irrespective of the language used, Nothing mentioned here should be considered as advice or recommendation. Please consult with your financial advisors before making any investment decisions. Like everybody else, we too can be wrong at times ✌🏻
NSE:CDSL
by TheChartereds
3
XCH on Risk but with Potential?The old "Maybe Bottom" did not hold on the news that Chia Network Inc will sell 200k XCH worth ~ 5 Million USD from the prefarm. The questions are: - How many prefarm XCH will get sold the next years and how often? This risk now is clear visible. - How is the financial situation that selling part of the prefarm was worth the lost in trust? - How far in the future is the IPO? - How is the situation about potential B2B customers and partners? In case it isn't that bad the XCH downtrend could turn around. More bad news on the other hand could create a massive loss in value. In my opinion the risk is very high, higher than before. I am not sure if that is realy reflected in the price, so the new "maybe bottom" is weak. XCH trend was always off the general crypto market even that the trend influences the XCH trend. XCH and Chia Network as a brand is also not worth much currently. Outside of the Chia space it is unrecognised, forgotten or viewed as a scam. But this is not necessarily a bad thing at this point.
by Just4FunTrader
IPO Investing: Bad or Very Bad ?IPOs can be enticing opportunities for investors to jump into potentially high-growth companies from their early stages. While IPOs can offer significant returns, a strategy of investing in every IPO that hits the market is not considered prudent. Let us explore several key reasons why such an approach is unwise for investors. Lack of Information: IPOs often lack comprehensive financial history and operating data. As a result, investors have limited insights into the company's performance, growth prospects, and competitive positioning. Investing without adequate information increases the risk of making uninformed decisions and exposes investors to potentially unprofitable ventures. Limited Track Record: Since many IPOs are relatively young companies, they often lack a substantial track record in navigating economic downturns or industry-specific challenges. Assessing their long-term sustainability is just impossible. High Valuations: IPOs tend to be priced at a premium to attract investor interest. Especially, When innovative companies go public, It becomes difficult to value such companies owing to the absence of any market comparable. The result is higher valuations. An epic example is NSE:PAYTM . Also, If you boost this post, It would help us to reach many like-minded investors like you. Uncertain Performance: When valuations are high, so are the expectations. Newly listed companies face challenges in meeting the high expectations set by the market. While some perform exceptionally well, others struggle to deliver. This brings panic. Diversification Concerns: Investing in every IPO can create an imbalanced portfolio. The preset proportions may go haywire. Especially, when investors are forced to become long-term investors in a company due to a substantial decline in the stock price post listing. Conclusion: While IPOs may offer the allure of early-stage growth and potential windfall gains, investing in every IPO is not a wise strategy for investors. The lack of information, market volatility, high valuations, uncertain performance, and limited track record are among the key concerns. Instead, investors should approach IPOs cautiously, conduct thorough research, and focus on building a diversified portfolio that aligns with their risk tolerance and long-term investment goals. Have Insights or Questions? Let us know in the comments below.👇 ⚠️Disclaimer: We are not registered advisors. The views expressed here are merely personal opinions. Irrespective of the language used, Nothing mentioned here should be considered as advice or recommendation. Please consult with your financial advisors before making any investment decisions. Like everybody else, we too can be wrong at times ✌🏻
NSE:NYKAAEducation
by TheChartereds
6
TBO TEK LTD - Pre and Post IPO Statistics IPO Price: 920 Issue Size: 1150 Crore ( 1.68 crore shares) Lot Size: 16 Listed: 1426 ( Premium listing - 55% gain :) ) Closing on Listing Date: Closed in Negative @ 1406 minor loss of 1.4%) Listing Day Candle: long Range Spinning Candle Listing Day Volume: 1.2 crore Listing day open and low PRICE would act as a support in immediate future. Support Range: 1426 -1275 ( 10.5%) TBO tek is one of the leading global travel distribution platforms and simplify the business of travel for Suppliers such as Hotels, Airlines, Cruise, Car rentals, Transfers, and Rail and Retail & API Buyers such as Travel agencies, independent travel advisors; and enterprise buyers that include tour operators, travel management companies, online travel companies, super-apps and loyalty apps on its platform that enables them to transact seamlessly with each other. TBO Tek platform connects over 159,000 Buyers with over 1 million Suppliers across 100+ countries
NSE:TBOTEK
by manuagarwal21
Reddit Braves Wall Street with 48% Pop in Debut. When Growth?Traders upvoted Reddit’s IPO but can the buzzing social media platform earn its stripes as a public company now? Table of Contents: ⦿ Reddit Surges in Public Market Kickoff ⦿ If Wall Street Bought, Should You? ⦿ Reddit Stacked Up Against Rivals ⦿ Ad Posts Looking Like User Posts? ⦿ Bottom Line 📍 Reddit Surges in Public Market Kickoff Reddit (ticker: RDDT ) stepped into the public-market space this week with a flashy and splashy IPO (initial public offering) in New York that chalked up a 48% gain on its debut day. The listing was met with lots of cheer from Wall Street as it was the biggest one for a social media company since Pinterest hit exchanges in 2019. Shares of Reddit surged to $47 out of the gate to make its first deals at a 38% premium to the company’s IPO price of $34 a share. Valuation soared to $9.5 billion by the end of the session when shares closed at just over $50 a pop. Reddit’s listing day with the Snoo—the website’s official mascot. Source: Reddit. By the looks of it, investors upvoted Reddit—a chat-room powerhouse and a stalwart of community-based culture venues sprawling from cat-praising r/CatsInSinks and owl-loving r/Superbowl to the intimidating trading hub r/wallstreetbets that bankrupted GameStop short-seller Melvin Capital. 📍 If Wall Street Bought, Should You? So the question is, if Wall Street scooped up Reddit shares… should you? Let’s take a behind-the-curtain look at Reddit’s business model. It’s been three years of trying for Reddit to get listed on the New York Stock Exchange. Finally, it issued 22 million shares for flotation, of which 8%—or 1.8 million—were reserved for friends, family and volunteer moderators. Those are unpaid users who make sure all the online communities are running smoothly. And they are also the content creators, because—unlike Netflix (ticker: NFLX ) or Spotify (ticker: SPOT )—Reddit doesn’t pay for its content. The platform boasts roughly 73 million daily active users spread across 100,000 online chat rooms, or “subreddits.” Despite the wide reach and 19 years of existence, the platform has never seen what a profitable year looks like. Its revenue comes predominantly from selling ads to companies who paid $804 million last year while the bottom line arrived at a $91 million loss. The revenue figure was a 20% increase from the $668 million picked up in 2022. 📍 Reddit Stacked Up Against Rivals And while revenue growth can be seen along the years, investors are betting that Reddit will ultimately catch up to the big shots in the social-media space. When Meta (ticker: META ), formerly Facebook, kicked off its public endeavors in 2012, it soaked up a market value of $104 billion and raised $ $16 billion for its IPO. Elon Musk’s X Corp, formerly Twitter, landed its first public deals at a $14 billion valuation, having raised $1.8 billion. In comparison, Reddit raised $748 million at an IPO valuation of $6.4 billion. Reddit carries the lowest valuation at IPO among social media peers. 📍 Ad Posts Looking Like User Posts? Against that backdrop, Reddit is taking a sketchy approach to bolstering its ad sales. Apparently, the folks at the upper echelons of the company decided it’s a good idea to make ad posts look exactly like user posts . The so-called “free form ads”, the company said, will mimic the popular user post type “megathread” and will “encourage users to deep dive into the topic at hand.” The community, on the other hand, didn’t show much love to that new advertising strategy. “Enable comments on ads, you cowards,” said one Reddit user while related threads were loaded with users’ comments of disapproval. 📍 Bottom Line And there you have it, 19 years of posts, 100,000 subreddits, and 73 million users who churn out all the content and self-sustain operations. Reddit gave us the meme stock craze back in 2021. Is it going to give us a rerun of the stock frenzy with its own shares this time? Or will the folks at r/wallstreetbets flip the script and short it? 💬 Let us know your thoughts in the comment section below! Don't want to miss any of our articles and be notified when a new one is released? Give us a follow!
NYSE:RDDT
by TradingView
9
75: Reddit A Game-Changer in the Social Media Market?As Reddit prepares for its highly anticipated initial public offering (IPO), investors are buzzing with excitement. With Meta (formerly Facebook) currently dominating the social media sector, Reddit's entry promises to shake up the landscape. Market Potential: Reddit's unique community-driven platform has garnered a massive following, making it a potential powerhouse in the social media realm. Its upcoming IPO signals confidence in its growth prospects and market potential. Competition: While Meta remains the industry leader, Reddit's IPO could introduce healthy competition, driving innovation and benefiting users and investors alike. Investment Consideration: As Reddit gears up for its IPO, investors are weighing the opportunity to participate in this dynamic market. With Meta's established dominance, Reddit presents an intriguing alternative for portfolio diversification and potential returns. With Reddit's IPO on the horizon, the social media market is poised for disruption. Investors should closely monitor developments and consider Reddit's potential impact on the sector. Could Reddit emerge as a formidable competitor to Meta? Only time will tell.
NASDAQ:META
by Soldi75