Reddit investor Tom Sosnoff says IPO could benefit from being the only 'pure social media' stock

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Reddit investor Tom Sosnoff says IPO could benefit from being the only 'pure social media' stock
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The brokerage firm CEO and Reddit investor told CNBC's 'Squawk Box' why he's bullish on the social media company.

Reddit may have a lane on Wall Street all to itself when it goes public later this week, according to Tom Sosnoff, CEO at brokerage firm TastyLive. Sosnoff told CNBC's " Squawk Box " on Wednesday that Reddit will fill a niche in the market for investors who want to bet on the growth of social media. "I think Reddit's going to be a really interesting play because it's going to be, for most investors, the only tradable pure social media app," Sosnoff said.

And the emergent TikTok is owned by the private Chinese entertainment conglomerate ByteDance. Reddit being a pure play social media stock could have a downside too, as the company has never turned a profit. Sosnoff said he believes the company will become more disciplined and focus on profits once its is public. "I think it's because they've never really had to.

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