Reddit Insiders Selling Days After IPO; Shares Fall

Sounds like something a greedy little pigboy would do

ahahahahahahahahaha

Spez proving almost everyone else right.

On the other hand, he already cashed out once and was wrong, so...

https://en.wikipedia.org/wiki/Steve_Huffman

The site's audience grew rapidly in its first few months, and by August 2005, Huffman noticed their habitual user-base had grown so large that he no longer needed to fill the front page with content himself.[11][14][15] Huffman and Ohanian sold Reddit to Condé Nast on October 31, 2006, for a reported $10 million to $20 million.[3][16] Huffman remained with Reddit until 2009, when he left his role as acting CEO.[17]

Huffman spent several months backpacking in Costa Rica[18] before co-creating the travel website Hipmunk with Adam Goldstein, an author and software developer, in 2010. Funded by Y Combinator,[19][20] Hipmunk launched in August 2010[21] with Huffman serving as CTO.[22] In 2011, Inc. named Huffman to its 30 under 30 list.[22]

In 2014, Huffman said that his decision to sell Reddit had been a mistake, and that the site's growth had exceeded his expectations.[23] On July 10, 2015, Reddit hired Huffman as CEO following the resignation of Ellen Pao[24] and during a particularly difficult time for the company.[25] Upon rejoining the company, Huffman's top goals included launching Reddit's iOS and Android apps, fixing Reddit's mobile website, and creating A/B testing infrastructure.[3]

Since returning to Reddit, Huffman instituted a number of technological changes including an updated mobile site and stronger infrastructure, as well as new content guidelines.

I don't think that he's had a whole lot of faith in Reddit as a business since early-on.

Where are you getting this info?

https://www.cnbc.com/video/2024/03/27/reddit-shares-slump-after-ceo-steve-huffman-sells-500000-shares.html

https://www.sec.gov/Archives/edgar/data/1713445/000162828024011448/reddit-sx1a2.htm#i1b9a579e78a34dfa99f7f26daeec195b_100

I thought they paid him like $200M last year? How does that work out with only half a million shares?

That's weird, I thought the majority of the $150m or so he got last year was in stock. And this says he barely cleared 1/10th of that with this sale.

Edit: nevermind, explained in other comments

It was not just Apollo, there were other good clients too like Sync for Reddit.

So, at some point, Reddit was going to have to be generating a return. Spez or no spez.

I don't particularly like the route they took -- killing the third-party clients was annoying and I think that there were ways to be a profitable super-forum site and still have third-party clients. But it was gonna be something, and whatever they did -- more ads, selling data on users, only providing some functionality to paid users -- was gonna be unpopular.

the average person usually doesnt beat the average index fund, so if you arent keen at day trading, dont do it.

If you have the money to spend/blow, the "correct" approach is to:

1. Put the vast majority if your money into stable investments. Index funds, bonds, etc. You should have a retirement fund with at least one of the major companies (I have had good experience with Vanguard and Fidelity) and they can help with that. This is for retirement and the like.
2. Put a VERY small amount into "one off" purchases of various stocks. Stuff like "I think this apple computers might take off some day" kind of purchases. This is not a retirement fund. This is gambling. But it still might mean you have money for a kitchen remodel or a rainy day.

But if you don't have money to "throw away"? Do not buy individual stocks. Or crypto. Or anything other than what you need to have a life after you age out of the workforce because late stage capitalism.

Me too generally. But on a whim i bought 100 shares of NVDA back in 2019, and god damn has it been good so far.

Preach it loud and wide.

That's advice I've been given many times in my life. If I had any money to invest, that is likely how I would do it.

Most of my etfs are doing better than my stock purchases, but I have had a couple big wins over the years. I'm expecting my reddit put options to be another, though.

Didn't know da brutal yet kunnin' boss of bosses was also a shrewd investor

Do ya have any teef in da shiny choppa index?

RIP

Hot take is I don't think anyone should care about Aaron Swartz. He didn't do anything for Reddit in the merger and left without doing anything for Reddit so who cares. He then died being a martyr for a cause barely anyone cares about and his death didn't inspire any change to education publication/copyright. Nobody should care.

Edit: you can downvote me all you want but I would like someone to comment on 1 thing Aaron contributed to Reddit. Why should anyone remember his name other than 'but he killed himself for the cause bro'.

From my experience, these people have lots more shares than what they sold. And aside from spez, it's not really that much.

If I am not mistaken, these sales are also planned and public knowledge before the sales are executed. The key shareholders should know executives are going to dump stock.

But yes. This seems normal to me.

One thing of note is the average price spez sold for. That is actually below market value so it's likely that his sale price was fixed, which I believe is a thing.

I hate these fucking people so much.

Some of these people have been with Reddit since the very beginning and this is basically their first practical chance to sell any of their shares - I wouldn't read too much into their activity this week. For a company valued at $9B, having the founder & other executives only sell $41M in the week of the IPO if anything feels like the opposite of dumping.

I was thinking short sellers looking to profit would buy up as much as they could to make a bubble then short sell once the market started going sideways, and this chart seems to accurately reflect that:

Short!

My bet is the company winds up around a $2billion market cap after dipping to $1.5.

Anything that keeps them listed on the exchange is too high honestly

If you want to have a laugh at how ridiculous the whole market is, Trump's Truth Social just IPOed and has the same market cap as Reddit even though it's much smaller and full of insane people.

My company is planning on IPO ina year or so, I think we're taxed 50% if we sell early.

Shocked, I say!

Meh. Hindsight and all that.

People said it about Apple, Amazon, and Bitcoin. Can’t know which ones that will happen with and which won’t.

I didn’t want to tie my user name to my real life details for that payoff.

There are no guarantees an IPO will pop, even a buzzy one. Uber debuted at the low end of their estimate and trended downward, for ex, and didn't recover for over a year.

I thought about it, and I refused on a moral ground to support reddit. It still may go up, despite everything.

Rich people don't usually have morals... That's the difference between us and them.

I've got a single $35 p for 4/19. Didn't wanna go too nuts, I've seen plenty of shitcos reach ridiculous valuations after IPO like DASH, and then lose my ass buying puts waiting for the drop everyone knew was coming.

Be sure to keep track of your expected price change vs theta lost. Often selling earlier is just as good, after a quick move with higher volatility

I feel like he is Ellen Pao-ing himself now.

His purpose is to implement all of the unpopular shit, take off with his golden parachute, and then a new CEO steps up promising better mod tools and maybe better performance in the mobile app. They'll make the users think Reddit is headed in a positive new direction with Huffman gone, even though all of it has been preordained and effectively nothing will change, but at least the users will have their bread and circuses.

Tremendously special rules for tremendously special people.

His 500,000 class a shares were a part of the ipo offering, so they were directly sold with the ipo. He still has 4.1 million class b shares which have greater voting rights than class a shares. So the people in this thread saying he's sold all of his stock aren't correct, though he did sell all of his class a shares that are being traded in the public market for the ipo. It's all in sec filings as part of the ipo. You can see here who sold as part of the ipo and how much, and where all the ipo shares are coming from. Some were created to raise money for the company, others were already existing shares being sold by those who already held shares before the ipo. They wouldn't be able to sell after the market actually opened, that's where lockup periods come in, and it's 180 days in this case. The sale price of these shares was negotiated as part of the ipo before it was trading on the exchange. Now any still held are locked up for that period.

https://www.sec.gov/Archives/edgar/data/1713445/000162828024011448/reddit-sx1a2.htm#i1b9a579e78a34dfa99f7f26daeec195b_100

There is no ethical consumption under capitalism. Especially the consumption of free labor from commentors and moderators.

You didn't have to be a stable genius to predict that..

I hate to say it, but Reddit might be primed for a short squeeze. Everyone is shorting it because it is such a turd.

There's a bunch of trades which happen instantly when you IPO. I don't know exactly how it works, but I think that when my company went public the pool offered in the IPO included stock from priority shareholders. So I'm guessing he effectively sold them to reddit at slightly below initial offer value for them to release to the public as part of the IPO. This way he doesn't tank the stock by selling off 500k shares on the stock exchange.

I think that would be shorting the stock, which is financially betting against their stock. It's worth mentioning that shorting a stock has potentially infinite risk.