Reddit shares plunge almost 25% in two days, finish the week below first day close
Reddit shares are plummeting from the rally highs experienced after the social messaging company's IPO last week.
"Earlier this week, Reddit disclosed in a corporate filing that CEO Steve Hoffman sold 500,000 shares, and Reddit COO Jennifer Wong also disclosed that she sold 514,000 shares."
If they believed in the platform, they would hold. Yeah looks like they are looking for bag holders.
I don't know how much of a bag holding exercise it is instead of a "treat yoself" moment. Half a million shares at $50/share is $25 mil, minus 50% taxes is $12.5 mil.
That isn't that much money in the bay area. Don't get me wrong. It's a lot. But that's just a $4 million house with another $1 million in furnishings, and I'm guessing a nice car or two. Take the other $6 mil and invest in a diverse portfolio. They've basically sold their stock so they can square away their personal lives.
We all knew this was a pump and dump scheme. Spez got his, fuck everyone else.
did he really though? because I'd read a big chunk of that massive 100+ million dollar compensation was shares vested after IPO based on performance.
hopefully it ruins them all.
I want Elon Musk to buy Reddit. 😈
Elon: "Now that I've purchased reddit, we're going to rename it x."
Person with an ounce of common sense: "But you already changed twitter's name to that.
Elon: "Don't be stupid. I named it X, whereas reddit is going to be x. It's going to be a totally different brand."
Oh no it would be stupider than that. He would merge Twitter and Reddit as part of his "everything app" which is what he actually wants "X" to be and why he's doing things like trying to turn Twitter into a bank.
Next he will rename himself to XxElon MuskxX
Even Elon Musk can't kill what's already dead.
Elon could be this guy.
This is evil and wild.
Holy shit that would be hilarious!
If he does buy it he'll probably rate limit it like Twitter
No, do jira first pls
Reddit has a market cap of $7.8 Billion right now.
Truth Social had a market cap of $8.4 Billion.
It's all just rigged gambling. That money won't benefit the company at all. The investors just sold all their stocks to the hedge funds and retirement funds for them to lose money on, like always. The IPO was just a way to pay off investors and let executives cash in their stocks. I'd love to know what restrictions on selling came with the stocks that were given to regular employees and users/mods. Like are they allowed to sell right away or do they have to hold it for some period of time?
But about as democratic as can be. No one was forced to buy Reddit. Benefit or not to the company, the company was essentially sold. The new owners of their very own choice will want a return. A big return to essentially cover 8 billion they just paid for it.
Reddit will need tens of billions in revenue to make the profits those new owners will demand. It is that drive to justify the cost that will make it another shitty bloated ad platform.
The stock market has a lot of magical thinking behind it. That's why there are constant frauds.
Influencing Spez's options on steel tarrifs isn't worth as much as the founder of Truth Social
This is the first I've heard of whatever truth social is
It's where all the Maga people went after Twitter started banning them for pushing (I think it was russian) propoganda.
It's still at 50 dollars which is insane. Even 37 dollars is much more than it's worth now, and future looks very bleak for it.
Probably depends on the deal they made for selling our data. Could be a gold mine for em. Here's hoping for a big crash down to earth though.
They sold it to Google for 60 million. That's a hilariously low price.
Oh noooo, who would have guessed the initial week would have been pumped to grift more value out of it and then immediately hard dumped
Why were insiders allowed to sell so quickly?
There's a lot of confused people in these threads. Steve Huffman sold 500,000 shares as part of the ipo, so they were some of the shares sold immediately before they opened on the market (at the about $30/share price). He still holds 4.1 million shares. Other insiders sold some shares as well. Some shares were created to raise money for the company. Once the ipo actually happens and the price for all those shares is negotiated with the bank assisting and all initial buyers, then it begins trading on the open market. At that point they are in a lockup period, and they can't sell anything for about 180 days. All of this is in sec filings, where you can see the source of all the shares that were part ot the ipo.
Look I hate Steve Huffman too, I'm here on lemmy after all. But this is a grossly over valued tech stock and there hasn't been many tech ipos in a while. It's very not surprising it would start sinking after an initial explosion of buying activity. It's not dropping from insiders unloading stock right now though. They're in lockup.
Steve Huffman sold 500,000 shares as part of the ipo, so they were some of the shares sold immediately before they opened on the market (at the about $30/share price).
I suspected as much. I got the invite too, and thought about putting some money in. But I didn't want to risk the chance of being King Steven's exit liquidity, even if I could make some money on it, so I passed.
"Earlier this week, Reddit disclosed in a corporate filing that CEO Steve Hoffman sold 500,000 shares, and Reddit COO Jennifer Wong also disclosed that she sold 514,000 shares."
Third bullet point. Nuff said.
That is definitely part of it, but r/Wallstreetbets is also shorting the fuck out of the stock.
One of multiple threads- https://www.reddit.com/r/wallstreetbets/comments/1bcfl86/reasons_to_short_the_reddit_ipo_make_big/
Oh I forgot about those guys. Juicy.
Tally ho lads
This is normal and not a big deal at all. Essentially happens with most IPOs.
This is generally how IPOs work out. Same happened with ARM.
Yup. Nothing surprising.
thoughts and prayers; go bears.
Hope it keeps plummeting.
The layout change this week is what did them in.
Wow, it doesn't even resemble Reddit anymore. I was also immediately hit with a full page ad. Glad I left.
Digg reference?
They changed it yesterday. It sucks.
I really think most investors really are disconnected from the reality of the companies they are investing in despite there being communities online where you can get the low down. Someone got rich, but it will not be the investors. Suckers.
This was totally expected. Story of most tech IPO’s. It’ll continue to fall into the teens, maybe single digits and stay there for a long time.
That spezial mod of r/jailbait already cashed out his shares for something like 16 million so he got his... I doubt he cares what happens now.
I so rarely get to do my c/news duty outside of that community, and you're welcome.
Stock Market Capitalism is just imaginary numbers made up by rich people to convince other rich people to give them money. It's completely ephemeral.
The fact that it can rise or fall with nothing more than a silly antic from one person is proof about how insubstantial and frankly ridiculous the whole scheme is.
Well I mean money has been arbitrary since it was invented. Why is one shiny metal more desirable than another shiny metal? Because it's yellow. Rarity didn't even always factor into it; centuries ago the Spanish tearing up South America looking for gold dumped enormous amounts of platinum into the ocean because nobody "knew" it was valuable. Because it was the wrong color but not actual silver.
Fun fact: the capstone on the Washington Monument is a nine-inch tall piece of aluminum. It was expensive because it was difficult to refine until the Bayer process was developed two years after it was set.
Stock price is really just a present value of future expected earnings. Buying Coke for $100 is because you think the earnings of that share in the future is worth $100. So yes, if the company makes an announcement that it isn't as profitable, the price will go down, because buyers won't want to pay the same for an asset that is returns less than it was expedited to.
Yes, there are complications. Shorts, futures, non dividend yielding shares, and more make it more muddied. At the end of it though, the future expected earnings are what is being bought and sold.
Hold on guys. I want to sell you all together for a lot of money. I mean not you personally just everything you write. No worries 😁.
Called it. Overvalued. The site has been is in dire need of investments to improve the platform. Give tools for the moderators to do their job properly (they're already working for free), improve the page layout, fight bots in a more intelligent manner, find innovative ways to make the platform turn a profit instead of resorting to the most assholeish, intrusive and abusive ways ever. But instead the dipshit that runs that dumpster fire gave himself a huge undeserved paycheck with the money that should have been used to do that so when it inevitably comes crashing down he has made some reserves.
I wouldn't be surprised if most of the traffic on that site is bots farming karma so they can spam some ads at that point and a significant portion of human accounts they have left are probably shadow banned by false bot detection. Every attempt they've made to make money out of the platform was so terribly thought through that it just unnecessarily resulted in a far worse experience for the userbase than it needed to, screwed over the people who work for free to keep running and was met with huge backlash every time. And they still can't turn a profit.
Bull trap. Which will follow with a bear trap. Then after two bounces it'll crash like Robinhood.
I'll stick to VTI and VXUS.
Ya love to see it folks.
Hey there, it's been a while, hope you are doing well
This reminds me of the things preceding the 1929 stock market crash. I'm not a history expert and know very little about it, but I recall that just before it happened, many people who ordinarily did not care about the stock market or had to means to care about suddenly started speculating in the market. That may not have lead to the crash but possibly it was a symptom of whatever has fuckening. I think just looking at us all here talking about how reddit this and that blah blah, that's a symptom of the impending market crash of the early 20's. LOL it would be hilarious if it happened exactly in 2029.
Elle oh Elle 😂
Let me know when it becomes a penny stock...
Ooh nooooooo... anyway.
Ya love to see it
I'm doing my part!
Why do we keep seeing these fake news headlines? It's up 40% since IPO.
It's not a fake news headline - the stock closed below the first day close price, not the IPO price.
I see up 45% since IPO but did go down 14% in last 24h
Also confused
I mean, yeah? Happens with most IPO's after all and as long as it stays stable and higher than the 34 initial IPO price, I'll be a happy camper.
You invested in reddit?
Yes. I had the chance to buy into the IPO with my old, dead account so I had some extra cash that I could invest/gamble with so I pickup a few shares and I put in a reminder to sell at the end of the lock out phase.
I mean you can hate reddit all you want, I'm not active on the site myself outside of a few niche communities that don't have active home here but I personally don't have qualms about making some money off of reddit if I can.
