Two New IPO’s: Reddit (RDDT) and Trump Media & Technology Group Corp. (DJT)

Tom Gentile

Posted in
Current Events

By: Tom Gentile
March 28th, 2024

4 mins read

One signal markets are bullish is when the IPO or Initial Public Offering activity is going strong.

Though we’ve had a nice, bull market run since October/November of last year, it happened and is still going without a noticeable batch of IPO activity.

2022 and 2023 were two years which saw the slowest activity since the Global Financial Crisis of 2008.

Thus far, 2024 there have only been 4 IPO’s.

Will Their be an IPO Recovery in 2024?

An article written at the end of January this year said so far this year only 13 IPOs have filed their paperwork. Info gathered from marketwatch.com shows a stat from Renaissance Technologies, 13 companies filing for their IPO is 13.3% below the number during this time period a year ago.

Where I noted at the beginning of this piece UPO’s are a sign of a bullish market, the juxtaposition is the IPO market volume is dependent on the market ‘being’ bullish.

It seems it would only be prudent to expect a strong IPO market coming to fruition so long as there is a belief this bull market will continue.

That stands to reason as it is tough to go public when the demand for stocks overall is depressed. With the bull rally that started the last couple of months in 2023 and the continued run to the present time of this writing it gives the impression demand for stocks is strong.

IPO Situation Now in March

The markets have now seen 43 IPO’s which is 16.22% more than this same time in 2023, which at that time had 37 IPOs.

RDDT and DJT are not the first IPO’s to hit the markets, but they are the two most talked about right now.

If one wants to see the list of companies that have gone IPO in 2024 the list can be found here: https://stockanalysis.com/ipos/2024/

Reddit, Inc. (RDDT)  

RDDT is an online social platform. It operates mobile apps and a Website that allows users to form communities and create and share content.

It seems like any company associated with AI has a chance for buyers to come to their stock. 

And RDDT is assisting in that field as it provides data to Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). The search engine giant is using RDDT to enhance its AI offerings.

Trump Media & Technology Group Corp. (DJT)

Digital World Acquisition Corp. was acquired by Trump Media & Technology Group Corp., in a reverse merger transaction. It looks like folks are going to refer to this company simply as Trump Media instead of saying the mouthful that the full name is.

This is the parent company to Donald Trump’s social media platform Truth Social.

I am primarily intrigued by the company and the play seems to be, to me, to anticipate a bump in price on the back of Trump supporters coming in to show support for the former President by buying shares in lieu of direct financial contributions.

This seems to have the classification of a “meme stock” being discussed in articles about this company. I am not calling it a meme stock, but there are many that say right now to NOT expect stable financial returns from this company.

I am not interested in either of these IPO’s from an investment standpoint and for me I am purely going to look for a pattern that will soon develop that I can then consider an option trade.

I will continue to monitor the IPO market in the event it is on its way back and my focus will be to find option trading opportunities when they start listing options on them.

Which is what I will research further with RDDT and DJT.

Tom Gentile
C1P: Chief 1-Percenter

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