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Reddit Goes Public

Reddit, AT&T, Block

Good Morning! 👋

Happy Friday! Have a good weekend:

👉 Reddit announces IPO

👉 AT&T massive outage 

👉 Block earnings are in

REDDIT: IPO ANNOUNCED

Reddit is preparing for an IPO with ambitions to capitalize on the resurgence of U.S. public offerings, aiming for a $5 billion valuation. It plans to start marketing shares potentially by March. Reddit unveiled that they have 73.1 million daily active users and improved financials in 2023. They reported a net loss of $90.8 million on $804 million in revenue.

Source: Internet Matters

The company branches into data licensing, including a significant partnership with Google for its AI development. Interestingly, they plan to offer IPO shares directly to their community members, bypassing traditional lockup periods. Additionally, Reddit has invested its excess cash into Bitcoin and Ethereum, which has gotten tons of love from the crypto community on social media.

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OUTAGE: AT&T USERS

AT&T reported that a significant network outage was resolved after several hours on Thursday. It was due to a procedural error in their network expansion efforts, ruling out a cyberattack. This outage left hundreds of thousands without wireless service, prompting FBI and Homeland Security investigations.

Source: Reuters

The outage began in the early hours but was fixed in the afternoon. AT&T customers filed over 1.5 million complaints on Downdetector. The FCC got involved to determine the cause amidst federal investigations into a potential cyberattack. The outage disrupted services and emergency communications in key cities, leading to a 2.4% drop in AT&T's stock. This event marks another significant outage for AT&T following a similar incident in 2008.

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BLOCK: Earnings Are In

Block's shares climbed to 14% after hours as the payment firm's Q4 earnings outperformed expectations with significant gross profit and revenue growth in its Square and Cash App operations. The firm announced a 22% increase in gross profit to $2.03 billion, leading to an updated adjusted EBITDA forecast of at least $2.63 billion.

Source: X

Block concluded the year with 56 million monthly active users on Cash App, with Cash App itself registering a 25% year-over-year increase in gross profit, amounting to $1.18 billion. Under Jack Dorsey's leadership, the Cash App Card's monthly active users rose by 20%. In efforts to streamline, Block has recently reduced its workforce, following a pattern of layoffs to refine its operational efficiency.

Headlines You Need To Know: 🎙

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The Founding of Reddit

Reddit was created in a dorm room at the University of Virginia by two roommates, Steve Huffman and Alexis Ohanian, in 2005. The duo was inspired by creating a platform where news aggregation and social commentary could thrive. They embarked on a journey that would revolutionize the way information and ideas circulate online.

Source: Insider

With initial support from Y Combinator, Reddit's simplistic design and user-driven content quickly captivated a diverse audience. It morphed into a sprawling digital ecosystem, where communities, known as "subreddits," cater to every imaginable interest. The platform's democratic upvote and downvote system ensures that the content is curated by its users, making Reddit a unique blend of social media, news aggregator, and a deep well of internet culture.

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