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.
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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.
How long is the lockout period?
Piggy boy etc have a 180 day lock.
What about the incentive investors? The Reddit members that got the early invitation?
No idea
It's honestly more that investing in a company that hasn't been profitable for 20 years and has had the CEO admit they don't know how to properly turn a profit doesn't strike me as a good investment.
I'm not saying you should get out, your money is your business of course but you may want to look at how other IPOs performed immediately after release. The ones I know of are CRSR(CORSAIR GAMING), OLPX(OLAPLEX), and RR(RICHTECH ROBOTICS). All three of these spiked dramatically up after the initial offering, then crashed to less than half the price of the initial offering ( except CRSR which is at offering price currently).
Now these aren't the same industries of course so things could differ but I would be surprised if it did. The selling of data for LLMs(AI) is very limited IMO mainly because the more AI generated content reddit has the worst the model will be for the LLMs and AI content is pretty high right now. RDDT just does not have good fundamentals for an investment, public sentiment is super low already and now viable alternatives are popping up like lemmy. I am also sure that now they are public reddit will only get shittier for the user leading to a lost base.
I am not a financial advisor, this is just my opinion. I would personally get out relatively soon after you capture some profits and not look back. Again I'm not trying to tell you what to do but I would strongly consider these things. Best of luck and I hope you get some nice gains from it!
So for me I have no faith in the company, I'm just making a bet with some extra money, and again it's just my fun money to see if my theory that wall street is freaking insane and just still just chases after tech.
There's no expectation that this will pay out big, if at all, and losing this little bit of cash won't break me.
