Finimize - ⛽️ Gas ain't too bad, actually

What’s going on here?

Reddit’s set to go public in one of the year’s biggest listings, taking a punt that its digital die-hards will bring their passion to the real-life stock market.

What does this mean?

Many a stock market frenzy has been born from the forums of Reddit, but the two-decade-old platform has so far shied away from the public market itself. Peek into Reddit’s files, though, and the digital hangout spot has clearly struggled to turn online fame into financial gain. Just last year alone, Reddit racked up over $90 million in losses. That might be why the social media platform is keen to tap into the wallets of loyal users and moderators, more affectionately known as Redditors. Reddit hasn't let slip how much it thinks it's worth, but some analysts expect a valuation of roughly $5 billion for the public market debut, according to Bloomberg, which could happen as soon as March.

Why should I care?

For markets: Forget historical literature, AI is learning from Reddit.

Redditors deliver conspiracies, hot takes, and witty quips, but that doesn’t pay the bills. The San Francisco-based company makes money selling advertising space, forcing it to compete against TikTok and Meta. No wonder, then, that Reddit jumped at the chance to let Google pay for access to the platform’s data stash to train up AI algorithms. The deal's reportedly worth $203 million, so Reddit could make $66 million in revenue from the tie-up alone this year – about a tenth of its total takings last year.

The bigger picture: The stock market is getting crowded.

Reddit’s public market debut will gauge how investors feel about buying into a venture capital-funded startup. The better the launch goes, the more private companies will consider following suit. That’s not to say that Reddit’s going it alone, mind you: fast-fashion giant Shein, Microsoft-backed data security whiz Rubrik, healthcare payment firm Waystar Technologies, and Kim Kardashian's Skims underwear brand are all expected to go public this year.

What’s going on here?

European gas prices fell to their lowest in two years, a sign that the region’s energy crisis might finally have discovered its calmer side.

What does this mean?

Expensive energy is a double whammy for folks’ budgets. Not only do household bills bite even harder, but because companies are stuck with higher costs across the board as well, plenty of everyday items end up costing more too. That had been the case ever since war in Europe meant that Russia’s hefty supply was suddenly out of bounds. But European nations have kept a cap on their energy use, while stocking up on natural gas alternatives from the US. So now, Europe’s gas tanks are around two-thirds full. That effort to reduce the scarcity factor paid off: energy prices have come down to their lowest since May 2021, which should help Europe make inflation skedaddle.

Why should I care?

For markets: And, relax.

The carbon dioxide released from Europe’s collective sigh of relief could create fuel for a small country. Everyday Europeans will have more manageable bills. Companies can focus on what they do best, instead of compromising profit margins to pay for rising operating costs. Even the European Central Bank can catch a break: as lower energy prices bring down inflation, the central bank could consider cutting interest rates to let the economy breathe a little easier.

The bigger picture: Europe doesn’t know how to go it alone.

There’s just one hitch: Europe has essentially switched its dependency on Russian gas for a reliance on American supplies. That’s plugged the gap over the last couple of years, but it still puts the region in a vulnerable spot. If Asian countries bid more for a bigger share, extreme weather causes problems for energy plants, or US politics turn spicy, then Europe could be left out in the cold again.