Meme stock or market trendsetter? Here’s what Reddit’s IPO can tell you about how to cash in on fast-paced tech companies in 2024
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Reddit’s recent debut in the public market saw shares skyrocketing by 48% that day.
At its debut in March, Reddit’s IPO started at $34 per share, after reaching a high of $50.44 at close of market that day — and was sitting at around $46 on Thursday. Reddit’s IPO could incite a trend for more tech IPOs in the near future. Avery Marquez — assistant portfolio manager at Renaissance Capital — told Bloomberg that they expect a tech revival in the coming months.
“The initial trading is important but the aftermarket performance is just as important,” she told Bloomberg.
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While purchasing shares at the IPO price is typically reserved for institutional investors, certain retail investors were able to purchase shares at the IPO price too, giving them the chance to build their wealth like the ultra-rich.
If the hype around Reddit (RDDT) shows you anything, it should be that there are many ways to take advantage of tech companies’ wealth-building potential, especially in 2024. And even if you missed out on Reddit’s public debut, that doesn't mean there aren’t other opportunities at your fingertips.
Stay on top of the latest in tech
Investing in high-upside technology companies can be complicated, even though as an asset class it has proven to provide high returns, diversification and high growth potential, much like we’ve seen with Reddit.
Reddit’s turn from private to public goes to show there are opportunities in both sectors, no matter what level of investment you’re looking to make. In other words, you can get your hands on this asset regardless of how much you want to invest.
If you want an accessible way to invest in the fast-moving world of private tech companies, the Fundrise Innovation Fund is making private tech investments accessible to everyday investors so you can take advantage of private, high-growth tech companies in their prime and get in on the ground floor before the next big IPO. The innovation fund has seen solid annualized returns since its inception, and with a low minimum investment of $10, it’s an affordable way to venture into the world of tech investing.
To get started, just download the Fundrise app and sign up. From there, you can browse and invest in a portfolio of top-tier private technology companies] before they IPO.
If you want an easy way to take advantage of what’s currently available on the market, Robinhood — a commission-free investing app — is an accessible option to invest in tech companies that have already gone public. Robinhood allows you to buy fractional shares of a stock and they offer in-app investing guides and 24/7 customer service access so if you need to ask any questions about your investments, you won’t have to wait.
Read more: These 5 magic money moves will boost you up America's net worth ladder in 2024 — and you can complete each step within minutes. Here's how
Get top-notch guidance
Even if a company has already done its IPO, it doesn't mean that you've missed out. While the average annualized stock market sits as 10.26% as of 2023, most of those returns have come from a surprisingly low number of companies.
An IPO renaissance could be upon us, wth the U.S. economy trending toward a potential bull market heading into the latter half of 2024.That being said, knowing what companies might net you consistent returns can make a huge difference. And this is where Motley Fool Stock Advisor comes into play.
Stock Advisor is a subscription-based service that provides users with market insights and expert-stock picks, so you can better allocate your money to see the best returns.
Essentially, Stock Advisor does the research needed to help you find companies that have the best chance of beating the S&P 500. From recommendations to stock reports to a digital community of investors and more, Stock Advisor is a one-stop shop for keen investing guidance as you make your investments in tech or any other area of investing.
Diversify with alternative assets
If you’re hesitant to wade into the stock market right now, there are an array of lucrative opportunities to invest beyond the stock market.
There are many alternative or private investment options that can work as a solid hedge against inflation for your portfolio, but how do you choose which ones to diversify with?
Yieldstreet is an alternative investing marketplace that allows everyday investors to get in on opportunities that have historically been dominated by hedge funds and the ultra-wealthy. They offer an array of private investments like art, crypto, real estate and more.
Yieldstreet’s investment opportunities are professionally vetted with accessible minimums and term flexibility. You can create your Yieldstreet account by signing up with your email and answering a few questions.
Then you can start investing, track your performance and earnings as you diversify your portfolio with assets that interest you and can help you build wealth.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
