As Reddit’s initial public offering nears, independent equity-research firm New Constructs is warning investors to avoid the social-media platform’s IPO.
“Reddit’s IPO marks the return of the junk IPO,” New Constructs CEO David Trainer wrote in a note. “We think the company may never monetize its platform without angering its users, and the entire premise of Reddit is user-generated content. This business model is inescapably built on a catch-22: Make money or please users.”
Reddit…
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