I don’t like the Reddit ownership which is exactly why I switched to here…but this article is a month old, they priced their IPO at $34 and it’s currently selling at $55
Obviously this doesn’t mean it can’t change in the future, but it very much has not tanked.
I’m not a stock expert, but given its historic lack of profitability, that value has to be primarily speculative based on its usefulness for training ai.
I would expect to see that number fall eventually.
Pump and dump bud
Or just as a marker of how reliant a lot of web denizens are to adding reddit to end of their search for more relevant user generated data. Either way, it’s numbers will fall, as a lot of the more recent data often isn’t correct.
I assume it’s also priced that way because it can be used for propaganda.
Legacy media, hasn’t made a profit for years? There’s always some rich fascist cunt or nasty foreign government willing to buy it for more than it’s worth so they can push their agenda.
It’s not about making money for them. It’s about power and influence.
nasty foreign government
Foreign?
My government isn’t particularly nasty, especially compared to some of the worst autocratic regimes, because they’re worried about the next election.
Sucks if that isn’t the case for you.
Their capitalization was I believe around 8 billion. This is the number they need to understandably recover from an investment point of view. If I was an investor in a risky type of investment like this. Risky mainly in that it could be a dog forever, I would want to see 25 prevent profit in their financial statements relatively quick.
I am saying this all from an investment point of view of the people that now own it. More or less, Reddit needs to start showning profits of some 1.6 billion a year. That likely means they need 10 or 10s if billions in revenue per year. That will give you an idea what they will be developing and how advertising will need to be excessive. They will go the way of tiktok and other platforms in that emotional and divisive algorithms increase viewership.
The stock price is gonna get juiced for a bit, and then when the blackout period expires, lots of people are going to sell and the price will drop off a cliff. It’s a pretty common pattern in tech. I’m kinda expecting it to happen with Reddit.
Robinhood went public at around $38 a share, climbed its first couple weeks to over $55, then dropped like a rock to like $8 a share. Also look into Beyond Meats.
A lot of big name recognition companies have this happen to them during bull markets. There’s an initial run up, followed by a massive over correction and things don’t stabilize for at least 6 months after the drop off. As well as reddit is known, it’s going to be a hard rug pull.
Same for Rivian. Its IPO was at $78 per share, it climbed up to $130 and it’s at around $10 now.
What’s really interesting is how interested people are in buying puts right now. Today was the first day available to do so. I bought mine pretty early in the day and paid $460 per while the stock price was at $51.
Well it was over $60 by the end of the day, but my put call, instead of drastically going down in value like it should have, was actually selling for $580.
So many people are after puts against reddit that even as the stock went up another 18% throughout the day, puts were continuing to be bought at higher and higher prices.
So now my options are worth $120 a piece over what I bought them for, while reddit jumped another 30% in value from opening this morning to right now where it’s sitting at $62.90
Holy shit. I just peeked at put prices, they’re all almost double calls, that’s hilarious.
Same here
I bought as many puts as I can
So we finally found out spez’s exit strategy?
That’s the entire point of an IPO.
I’m sure Steve Huffman is worried that redditors are shorting the stock as it went from $34 to $59.80 since IPO.
A rough estimate is Huffman just made at least $102M from the IPO ($136M existing stock plus $193M in options and RSUs, at plus 75% increase in value) taking his net worth to at least $575M.
He gets a $20M bonus if the stock doesn’t tank by 50% for two weeks too.
Realistically he got his shares at a much much lower price so his gains are massively outsized.
IPOs are a scam, they lower the price for banks arbitrarily then claim it as a success when the numbers pop at launch, which is clearly a market failure where the insiders get first pick and ability to cash out. The SEC should jail any bankers who work on an IPO that increases by 30% on launch day for fraud and collusion.
Isn’t it great we all have a spot where we can comfortably watch Reddit set itself ablaze?
Doubly so as they’ve banned VPNs from accessing even old.reddit.com as of a few hours ago
Oh damn. Yeah fuck that place, glad I left.
Semi-related, I was searching for some hyper specific job related technical cybersecurity stuff a few weeks ago and the first result with the verbatim error message was a reddit post, so i clicked. No dice, loads a reddit branded error page. My employer has their own ARIN number/ASN. As far as i could tell every connection from an IP in one of our blocks was being blocked by reddit. My employer isn’t a faang type tech company, they don’t work in ai, they don’t scrape content for datasets or anything else. I can’t figure out why kind of business would cut off entire swaths of customers from accessing their site during the workday, a prime “take a shit and dick around on the phone” audience. I’ve just made a point to search with stack exchange site dorks since then.
Same kind of company that has a massive “YOU CANNOT BE HERE!” banner on accounts that get banned for kind of breaking the rules.
Same place that asks you if you want to open the website in the app everytime you go to the website.
Reddit used to be something great, but the monetary gain of a few from enshitification of the entire place was too much a temptation.
How does that work? “We’re sorry, your geolocation deviated too far and you can’t log in”??
Saying they banned VPNs isn’t completely, technically correct I’d guess. If I were another country then VPN’d in to my house, I would probably be fine. A pedantically correct statement would be that they banned known VPN IP ranges, so if you’re attempting to connect while your traffic is routed through one you get blocked.
Works for me on Mullvad. Firefox and Stealth app. Don’t have an account so not logged in.Stopped working on the web.
The biggest joke of the article was the person calling Reddit a community.
Yeah, until an admin doesn’t like what you say and you get permabanned. Real nice community you got there.
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It’s interesting the one place you aren’t seeing this discussed…is reddit. Which leads me to think it’s being suppressed to manipulate stock price. That’s illegal, right?
Illegal? Absolutely. Will they see any consequences for it is a different matter entirely, unfortunately.
Will they? Not a chance. But any large group talking about shorting it might, just as we saw with GME/AMC.
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I’ve fucked off from Reddit since this IPO news. Don’t want to be part of that or the overly intrusive and frequent ads.
If Arron was still here i bet he would do something awesome like give every user with 10000 or more karma some free stock, or completely give it away to all the users.
Kinda hilarious to see WSB get short squeezed back after how high and mighty they got about how evil shorting is when it was happening to their stocks
They would do better by backing out and not doing it. The state of their site is in. I imagine any ipo they have will tank.
Kekw
