Reddit is gearing up to launch its IPO next week, eyeing a valuation of around $6 billion. While some are excited, others point to the fact that the social media site isn't profitable, posting net losses of $90 million in 2023.

Crunchbase News Senior Data Editor Gené Teare joins Yahoo Finance to discuss Reddit's upcoming IPO and what makes the platform unique in the social media sector.

Teare lays out what the current sentiment for the stock is: "I think the signals here are very mixed. I think some people feel like this is a little rich as a valuation. They're targeting I think on the upper end of about $6.4 billion, and that has us saying, if this is a company that can still grow 18 years in then it might not be so rich...Its revenues around $804 million last year and it did grow that 21%. So if it can keep growing its revenues then there is potential in the stock, but I think a lot of that revenue growth is more recent. So I think there's a lot of doubt around whether this is a little rich."

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Nicholas Jacobino

Video Transcript

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JOSH LIPTON: A big event for markets next week, Reddit's initial public offering. The company eyeing evaluation above $6 billion, but the social media platform still isn't profitable. Joining us now is Crunchbase News Senior Data Editor Gené Teare. Gené, it is good to see you. I'm just interested today. What do you think the reception Reddit is going to be? Because it's an interesting name, Gené. I don't-- I don't actually know what the comp would be for a name like this. Maybe you do. And you've got a company that's been around a long time, Gené. But it's still posting losses, right? Net loss of around $90 million in 2023. How-- How do you think, if you were to take a bet here, investors respond?

GENE TEARE: Yeah. I think the signals here have been very mixed. I think some people feel like this is a little rich as evaluation. You know, they're targeting, I think, on the upper end, about 6.4 billion. And others are saying if this is a company that can still grow 18 years in, then it might not be so rich. So I think it's interesting-- it'll be interesting to see. It's revenues were around 804 million last year and it did grow that 21%. So if it can keep growing its revenues, then there is potential in the stock. But I think a lot of that revenue growth is more recent. And so I think there's a lot of doubt around whether this is a little rich. We have heard reporting that on the secondary markets, there is some purchasing around the $5 billion mark. So, yes, it's a big IPO. It should be north of 5 billion. Whether 6.4 billion is a little rich, we'll wait and see.