Popular internet message board Reddit submitted a draft registration statement with the Securities and Exchange Commission (SEC) outlining its intention to go public. The online forum made waves in early 2021 following the GameStop frenzy and remains a popular propagator of meme-stock hype.
No specifics on the offering have been made public, but Redditors have already begun to discuss the pending IPO on the platform.
Finder's top picks on where to buy Reddit stock when it goes public
Our selection of top picks is based on the same criteria as our annual Stock Trading Platform Awards. This is updated yearly to reflect changes in the market.
"Best for" picks are those we've evaluated to be best for specific product features or categories – you can read our full methodology here. If we show a "Promoted" pick, it's been chosen from among our commercial partners and is based on factors that include special features or offers, and the commission we receive.
This isn't an exhaustive list of all the trading platforms out there. What's best for you depends on your own investing strategy, budget and financial goals.
What we know about the Reddit IPO
Reddit confidentially submitted a draft registration statement with the SEC on December 15, 2021. The company was valued at over $10 billion following a funding round in August 2021 and hired its first chief financial officer, Drew Vollero, earlier in the year.
Reddit's financials aren't public — yet
Following the confidential submission of its draft registration statement with the SEC, Reddit's intentions to go public are clear. But its financials have yet to be made public. Now, that doesn't mean we don't know anything about what Reddit has been up to. There are a few data indicators investors can use to better gauge Reddit's position in the market.
According to Crunchbase, Reddit has raised a total of $1.3 billion over eight funding rounds. Its most recent funding round took place in August 2021, where the company raised $410 million from Fidelity Management and Research Company. Past investors include Tencent, Sequoia Capital and Vy Capital, among others.
The company is currently valued at $10 billion. We'll update this page and take a closer look at Reddit's financials as soon as its S-1 filing is available to the public.
Note: all dollar amounts on this page are in US dollars unless otherwise stated.
How to buy Reddit stock when it starts trading
Once Reddit goes public, you'll need a brokerage account to invest. Consider opening a brokerage account today so you're ready as soon as the stock hits the market.
Compare stock trading platforms.Use our comparison table to help you find a platform that fits your needs.
Open your brokerage account.Complete an application with your details.
Confirm your payment details.Fund your account.
Research the stock.Find the stock by name or ticker symbol and research it before deciding if it's a good investment for you.
Purchase now or later.Buy your desired number of stocks with a market order or use a limit order to delay your purchase until the stock reaches a desired price.
Will I be able to buy Reddit stock in Canada?
You won't be able to buy Reddit stocks on a Canadian stock exchange like the TSX. Instead, you need a Canadian broker that provides access to international stock exchanges.
Interactive Brokers provides access to many stock exchanges outside North America like the Hong Kong Stock Exchange (SEHK), Korea Stock Exchange (KSE), National Stock Exchange of India (NSE), Frankfurt Stock Exchange (FWB) and London Stock Exchange (LSE).
It's impossible to predict how any stock will perform — and IPOs can be particularly volatile. Looking at the performance of similar companies can help you decide if now is a good time to buy Reddit stock.
See how the following stocks are performing, and view details like market capitalization, the price-to-earnings (P/E) ratio, price/earnings-to-growth (PEG) ratio and dividend yield.
Company summary
Meta Platforms, Inc. develops products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, wearables, and in-home devices worldwide. It operates in two segments, Family of Apps and Reality Labs. The Family of Apps segment's products include Facebook, which enables people to share, discover, and connect with interests; Instagram, a community for sharing photos, videos, and private messages, as well as feed, stories, reels, video, live, and shops; Messenger, a messaging application for people to connect with friends, family, groups, and businesses across platforms and devices through chat, audio and video calls, and rooms; and WhatsApp, a messaging application that is used by people and businesses to communicate and transact privately. The Reality Labs segment provides augmented and virtual reality related products comprising virtual reality hardware, software, and content that help people feel connected, anytime, and anywhere. The company was formerly known as Facebook, Inc. and changed its name to Meta Platforms, Inc. in October 2021. Meta Platforms, Inc. was incorporated in 2004 and is headquartered in Menlo Park, California.
Historical performance
Stock information
Market capitalization: $532170735616
P/E ratio: 14.8812
PEG ratio: 1.0333
Dividend yield: 0%
Company summary
Pinterest, Inc. operates as a visual search and discovery platform in the United States and internationally. Its platform allows people to find ideas, such as recipes, home and style inspiration, and others; and to search, save, and shop the ideas. The company was formerly known as Cold Brew Labs Inc. and changed its name to Pinterest, Inc. in April 2012. Pinterest, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.
Historical performance
Stock information
Market capitalization: $22422784000
PEG ratio: 1.3711
Dividend yield: N/A%
Company summary
Twitter, Inc. operates as a platform for public self-expression and conversation in real-time. The company's primary product is Twitter, a platform that allows users to consume, create, distribute, and discover content. It also provides promoted products that enable advertisers to promote brands, products, and services, as well as enable advertisers to target an audience based on various factors, including who an account follows and actions taken on its platform, such as Tweets created and engagement with Tweets. Its promoted products consist of promoted ads and Twitter Amplify, Follower Ads, and Twitter takeover. In addition, the company offers monetization products for creators, including Tips to directly send small one-time payments on Twitter using various payment methods, including bitcoin; Super Follows, a paid monthly subscription, which includes bonus content, exclusive previews, and perks as a way to support and connect with creators on Twitter; and Ticketed Spaces to support creators on Twitter for their time and effort in hosting, speaking, and moderating the public conversation on Twitter Spaces. Further, it offers products for developers and data partners comprising Twitter Developer Platform, a platform that enables developers to build tools for people and businesses using its public application programming interface; and paid access to Twitter data for partners with commercial use cases. Twitter, Inc. was founded in 2006 and is based in San Francisco, California. As of October 27, 2022, Twitter, Inc. was taken private.
Historical performance
Stock information
Market capitalization: $41093709824
P/E ratio: 214.8
PEG ratio: 3.64
Dividend yield: 0%
Buy stocks from these online trading platforms
Compare special offers, low fees and a wide range of investment options among top trading platforms.
Note: The dollar amounts in the table below are in Canadian dollars.
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Tax implications of buying US stocks in Canada
Canadians who earn dividends from US stock investments must pay the US Internal Revenue Service (IRS) a 15% withholding tax on their earnings. The rate goes down to 10% for bonds and other interest-yielding US investments.
An exception is made for stock investments held in trusts designed to provide retirement income. This includes RRIFs, LIRAs, LIFs, LRIFs and Prescribed RRIFs. RRSPs that hold US stocks, bonds or ETFs are also exempt from US withholding tax. RESPs, TFSAs and RDSPs are not exempt.
Canadian and international investment income must be declared on your Canadian tax return. Unless your US earnings are exempt from withholding tax, this means you'll be taxed by both the IRS and the CRA. The CRA may allow you to claim foreign tax credits for any taxes you've already paid to the IRS.
Speak with a tax professional to find out what rules and exceptions apply in your circumstances.
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.
Stacie Hurst is an editor at Finder, specializing in a wide range of topics including stock trading, money transfers, loans, banking products, online shopping and streaming. She has a Bachelor of Arts in Psychology and Writing, and she completed one year of law school in the United States before deciding to pursue a career in the publishing industry. When not working, Stacie can usually be found watching K-dramas or playing games with her friends and family.
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