One of the biggest winners in the war between novice, aggressive day traders and savvy hedge funds isn’t a Wall Street player. Reddit itself made a killing in the wake of the social media buying frenzy of “meme stonks.”
In a corporate blog post, the company proudly said, “As we reflect on Reddit’s 16th year, we are struck by how much has changed and also what has endured. Time and again, we have seen the power of community and connection alongside the growth and evolution of those communities and the humans behind them. Today, we’re excited to take another step forward in our evolution and announce a new round of funding.’
It was reported Monday that Reddit, most likely due to its recent high profile and garnering more visitors to the site, raised over $250 million in a new round of funding. The valuation of the social media company doubled to about $6 billion.
Seeing an opportunity, a spokesperson for the company said, “We decided that now was the right opportunity to make strategic investments in Reddit, including video, advertising, consumer products and expanding into international markets.”
Reddit CEO Steve Huffman said, “It is a good market to raise funds. Valuations are very high right now.” Huffman added, “It never hurts to raise money when there’s an opportunity to do so and Reddit had a strong year,” in an interview with the Wall Street Journal.
Reddit boasts more than 50 million daily active users and advertising revenue rose 90% in the last quarter—compared to the same time last year.
The company also said on the blog, “We are also readying to double the number of Reddit employees this year; it’s surprising not only for the pace of growth but also that such a relatively lean team has been behind one of the most visited websites in the world. We are confident in our mission to provide community and belonging to everyone and are well-positioned for the growth we have planned.”
So, Reddit beat out both the short-selling hedge funds and Gen-Z day traders. Well played, Reddit, well played.