Is Reddit Becoming a 'Meme Stock'? IPO Structure Poses Risks

Reddit plans to raise $748 million in its IPO by offering around 22 million shares priced from $31 to 34 each. Redditors can sell their shares immediately through a directed share program rather than facing the typical post-IPO lock-up period. This could lead to Reddit becoming a "meme stock" heavily influenced by social media chatter rather than fundamentals. Reddit users and moderators will gain access to 1.76 million shares, or 8%, and sell freely without restrictions. There's potential for Redditors to collectively pump up the stock price through coordinated buying.