What happened
Reddit's 180-day post-IPO lockup period expired on August 9, 2024, allowing pre-IPO investors and employees to sell shares for the first time since the March debut. The stock had been volatile heading into the event, touching roughly $73 earlier in the summer before falling toward $49 during an early-August technology selloff and rebounding to about $55 just before the lockup lifted.
Lockup expirations are closely watched because they can add selling pressure as previously restricted holders gain the ability to cash out. Despite the swings, Reddit's shares remained well above the $34 IPO price, leaving early backers with substantial paper gains and giving the market an early read on how insiders would treat the newly liquid stock.