Reddit seeking $6.5B valuation

Market Overview
Read time 1.6 minutes

Year To Date Performances:

1. The European Commission has imposed a $1.95 billion fine on Apple for its monopolistic practices in the music streaming app market. The fine is a result of Apple's restrictions on app developers, preventing them from informing users about more affordable music services available outside of its app and hindering developers from directing users to these cheaper options. Initiated by a complaint from Spotify in 2019, this investigation revealed Apple's actions over the past decade have led to increased costs for music streaming services due to the high fees imposed on developers. Apple's defense highlights Spotify's success through the App Store, emphasizing that Spotify's subscriptions sold on its own website do not generate any revenue for Apple, despite the criticism from many developers regarding Apple's 30% in-app purchase fee. This marks Apple's first significant penalty from the EU and stands as one of the largest fines against a tech company by the European Union.

2. Reddit is on track for an IPO, targeting a valuation of approximately $6.5 billion, a significant decrease from its $10 billion valuation in 2021. The company plans to price its shares between $31 and $34, aiming to go public on the New York Stock Exchange under the ticker RDDT. Despite a 20% revenue increase in 2023, reaching $804 million, Reddit still reported losses of about $90.8 million. Notable investors include Sam Altman, Tencent, and Advance Publications (Condé Nast's parent company), with Altman's early investment potentially valuing over $400 million. As part of its IPO, Reddit is offering its community moderators the opportunity to purchase shares at the IPO price and is refining its data licensing strategy. This IPO is poised to be a notable event in the tech and social media space, marking the first major IPO in this sector since Pinterest in 2019, especially in a currently sluggish IPO market.

3. Visa and Mastercard agree to historic $5 Billion Settlement! In a groundbreaking move for the payment industry, Visa and Mastercard have come to a historic $5 billion settlement, marking a pivotal moment for small business owners. If you are a small business owner, claim your share today!*

4. Headlines

   1. Haiti has declared a state of emergency after gangs attacked their two biggest prisons.

   2. Apple is releasing a new Macbook Air M3 chip.

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