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
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?
“Our inherently good government with unfortunate rich fascist fucks in it, vs their inherently nasty foreign government”
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.
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.
All stock is speculative.
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And some stocks have a 2:1 stock to book value ratio wheras others have 50:1. In the first case, even if the company closed down, unless the books were fraudulent you can still recover half your investment as it represents hard physical valuable assets.
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.
Ugh, don’t remind me. I lost my ass on them
Be in the market a while and everyone’s lost their ass on a thing or two. You slowly and painfully learn to take the L and bail out of stuff sooner. That helps.
Then sometimes things are just completely out of your control and something happens to a company overnight and you just get obliterated before you/ your broker is able to do anything about it.
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
That really tells me about liquidity and the IV of your position.
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.
The justice system has been disabled for these people. we are ruled by people of the dark triad. Pretty much every person of the 1% lacks compassion and remorse, is manipulative and often impulsive. Think about the fact that you have more money than you can ever spend, yet you accept that people around you are homeless.
These people keep winning and get worshipped like gods so others follow their lead and the world drops into an infinite „fuck you, I got mine“ loop, resulting already in destroying our ecosystem and climate.
We need to get these people out of power. Long term by educating the masses and short term by sabotaging them as much as we can.
we are ruled by people of the dark triad
Money allows you to disconnect from painful experiences. Allows you to tailor your world to be whatever you want. Whatever you cant do, you use your wealth to block or drown out of your memory. Its self delusion.
I’ve always wondered why they never see that not doing a thing would be better for them in the medium to long term.
I know. I made quite a lot of money due to some luck and special abilities. I met some millionaires.
They’re ignorant and indifferent to the pain of others at best and they will ruin you if you cross them at worst.
I only really know that its the situation/mindset of self delusion (minus the narcissism) I have spent years trying to leave (my earliest comments appear grisly to me when looking back) and I see it in their eyes too.
Well, we all learn and I wouldnt say a lot of things I said theoughout my life anymore. Dont cringe about your past, be happy that you were able to learn, adapt and change.
First off, happy easter! ❤️
Absolutely, However I can only fully move on when I physically move out. But because America is America and I have a depressed roomate that drags me down sometimes.
I feel you. Life can be harsh sometimes. Happy easter to you as well! (I needed your positive message today, more than you know)
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.
Old article
What’s with people posting old articles on Lemmy? It happens a lot.
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.
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
Kekw
