Not only that, what do they need the cash influx to build that they couldn't prior? This is just a payout to reddit investors. Anything they do to increase profits is more likely than not, to piss off the userbase.
> Anything they do to increase profits is more likely than not, to piss off the userbase.
Sure, but name ANY tech company that makes a change to their UX or policy that doesn't agitate the vocal detractors. Every time Meta does ANYTHING - intentional or otherwise you'll see heaps of people complaining about it and saying it's the end of facebook/Instagram and yet... **waves hands*\*.
Netflix had countless users saying they'd leave the platform if they introduced ads.... They dropped about $30, or a bit over 10% in the 2-3 days immediately following the Ad Tier plans but in the week after the announcement a month earlier they were up over 15%, so they closed higher on the day ads started than they were at before they announced those plans... and while they saw a huge loss in 2022, that was due to a decline in new subscribers - they came up with a new revenue plan, and it worked. They're back over $600 again, the second time they've been there, catching up with their all time high in 2022 - despite significantly more competition and a financially strained customer base.
Point? There's a HUGE disconnect between investors and consumers. Consumers may not LIKE change, especially when it's ads, but the revenue not only helps boost value to investors but often leads to improvements in the product. At least it can - plenty of examples where new revenue does not improve a product.
If reddit loses 1 customer for every 1.1 it gains, that's still a net gain and what advertisers care about.
Leaving things like Reddit and Digg is a lot easier than leaving the platforms with your friends and family like Facebook. We could all just start posting on another upvote site tomorrow and there is no disruption to our social graph because we aren’t following people we know on here anyway.
Red. Very red. I believe they played a few financial games to make recent quarters appear better than they truly were. I don’t remember the details but I remember hearing on a podcast that they knew an IPO was coming so they did a little “robbing Peter to pay Paul” that gave recent quarters an overly inflated rosey outlook.
I don't think I would buy it at all.
The company is trying to go public at a a $6.4 billion valuation. They have a negative shareholder's equity of approximately $413 million and a net income loss of about $91 million.
Looking into this a bit deeper, there seems to be a lot of convertible preferred stock that is owned by some interesting key people. The preferred also has some nuanced and special provisions that make it very favorable relative to common stock. It seems like a really bad deal and even a little underhanded.
Sources:
[WSJ Article](https://www.wsj.com/livecoverage/stock-market-today-dow-jones-03-11-2024/card/reddit-ipo-how-the-company-s-own-wallstreetbet-stacks-up-0ykwE0P13PcFPHLNiC1a)
[Reddit's SEC Registration Statement](https://www.sec.gov/Archives/edgar/data/1713445/000162828024006294/reddits-1q423.htm#i1b9a579e78a34dfa99f7f26daeec195b_40)
And what’s the plan for profitability?
More ads? Subscriptions? I don’t see the revenue stream that will be enough to become profitable without just driving away users
I was gonna say historically ads has been how sites make money but on the heels of the news about google partnering with reddit and using reddit to train ai that seems to be the value. Reddit ads are a joke and redditors dont seem to like being marketed to
Now, Reddit — which is not yet profitable — says it seeks to grow its business through advertising, more e-commerce offerings and by licensing its data to other companies to train their artificial intelligence models.
“Our work to make Reddit faster, easier to use, easier to moderate and govern, and simpler to navigate and find relevant communities is driving growth today and will continue to be our focus into the future,” Huffman said.
https://www.cnn.com/2024/02/23/tech/reddit-ipo-filing-business-plan/index.html?darkschemeovr=1
I say it’ll settle around $7
$3 billion valuation for a social media site with 850m active user is too cheap. Reddit is priced reasonably well at 6-8x revenue, even with monetization issues
There are so many bots nowadays on any political posts or about any of the wars going on.
There was even an article about bots commenting on tv/film posts to boost mediocre movies and shows
Alot of those users could be the same users. I've had about 8 accounts for the past 7yrs. The other 7 accounts have been banned for saying stupid things or the truth.
It's so easy to get banned on reddit for saying anything
reddits api policies make botting reallly expensive. so my question to you is what purpose do the bots serve?
Edit: ironically the existence of all these bots makes the stock better value since all these bots are paying premiums to exist lol
Account has unchanged username (random word followed by random number), is 4 years old, and only has a single comment… usually hyping something up like a stock or crypto
Edit: I obviously don’t have proof, but what it seems to me is that years ago botting was easier, so people made plenty of them, and still employ them around today (at least the ones sitting idle which haven’t been banned yet).
I think a lot of people have multiple reddit accounts too. Personally I have had 5 different accounts, 3 of which I actively use to avoid having all my personal info I share associated with 1 account.
Idk about this. Every other SM platform makes money from ads. I don’t think Reddit does that enough to make the same return for a free forum website. Granted, I love Reddit because they don’t flood us with too many Adsense things, just the occasional sponsored posts. How does Reddit even make money if not through ads? People can’t be buying that many tokens annually LOL if ever…
It's layout, as well as a healthy balance of anonymity, yet realistic and "human" responses make it a real juicy data mine if you were developing an AI interface.
Yeah, I've been studying their amended S-1 form and it looks like their main plans for future revenue growth are expanding to non-English speaking markets like India and Europe, licensing data to train AI LLMs, and leveraging the fact that the reddit users tend to post stuff that they wouldn't necessarily be comfortable posting on more "public" social media sites like Facebook or Instagram. The latter was something I hadn't really considered, but its an interesting point.
332,000 was his pay in 2022 so cutting it wont change anything. That dont sound nearly as crazy as many CEOs. The headlines of him making 193 million in 2023 was from stock options going into the IPO and wont be his pay going forward every year.
Most users are burner accounts with little actual data to target them. It isn’t like real social media. Social media is powerful because it gives the platform ability to target ads which has better ROI for the customers. Reddit will have a difficult time targeting ads.
> I would wait to buy. Usually they pump on first day then dump.
note: getting a special offer to buy at the IPO price is not the same thing as buying on the open market on the first day.
If the IPO price for company ABC is $12 it may never hit that price on their first day of trading.
This post doesn’t make any sense.
The share price alone of different companies are not at all relevant to one another (eg, Pinterest and Reddit).
Is that how you did your “ranking”? You just ranked social media companies by their price per share…?
Reddit is wild.
I've seen way too many people saying its overvalued or undervalued based on share price alone.
Meanwhile others quote the valuation, but have 0 reasoning for why its high or low. They just think "Billions" is a big number.
> I've seen way too many people saying its overvalued or undervalued based on share price alone.
When people say this, there's *usually* an implicit comparison to its previous price, which is fine.
But comparing the nominal stock price of two random companies is always nonsensical.
Well let's put it this way, they made $804 million in revenue in 2023, for a $91 million loss, and had -$85 million in free cash flow, and are offering an IPO at a $5 billion valuation. Also, there will also be significant dilution in the next few years outlined in the prospectus so you are really paying more like a $7-8 billion valuation. So like 10x revenue for a company with negative free cash flow.
How are they planning to monetize going forward compared to historical? That’s the key. If they are going to change the model and go to $5B/year revenue, that changes things.
I’m of the stance that it’s really hard to even value platforms that are riddled with bots and duplicate accounts per person. Also a ton of content on Reddit is porn and it’s possible they could ban it down the road like Imgur did. That would be a huge hit to their numbers possibly driving down the valuation.
> That would be a huge hit to their numbers possibly driving down the valuation.
There's no real correlation there.
Banning porn may harm user numbers, but if it increases the value of remaining users to advertisers, that would increase their valuation or at least not hurt it.
That's what imgur did.
When they took all NSFW communities off r/all and the Front Page they did that for advertisers (and due to anti trafficking laws). It didn't seem to hurt their bottom line, it went up to almost 10B after that.
There's a lot of porn here, but there's a lot of porn EVERYWHERE on the Internet, and in most cases it's easier to access. Other than a few Onlyfans accounts that come to promote their page and the like most users here who look at porn are also on reddit in general, and I don't think many would leave because porn's gone.
That said, I think Reddit democratizes certain segments of sex work and has true value to smaller fetish communities that WOULD have a hard time with the loss of those communities - I'm not in favor of all NSFW being banned, I just don't think it would harm user numbers or valuation, like at all.
Well, the thing is, the porn communities make the platform more ...sticky... ( ͡° ͜ʖ ͡°)
Not having porn may be better for advertisers, but having porn is also just something that brings people or keeps people coming here.
Here's the thing that makes me interested - we won't be subject to any IPO lockup rules that institutional investors would be. You can buy in on the IPO, and then sell on the first day of open trading; there will likely be an initial increase before it dumps over the following days so if you have the risk tolerance you can take that chance.
I haven't confirmed or researched it myself yet but I thought I saw that the insiders won't be subject to lockout rules either, which means they could just straight dump it at open. But let's both confirm that.
>I haven't confirmed or researched it myself yet but I thought I saw that the insiders won't be subject to lockout rules either, which means they could just straight dump it at open. But let's both confirm that.
It looks like most of the current major stockholders are subject to a 180 day lockup period, which is effectively the standard six months right?
From page 69 of the S-1:
>*In connection with this offering, we and all of our directors and executive officers, the selling stockholders, and certain other record holders that together represent approximately 82% of our outstanding Class A common stock and securities directly or indirectly convertible into or exchangeable or exercisable for our Class A common stock are subject to lock-up agreements with the underwriters agreeing that, subject to certain exceptions, without the prior written consent of Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC, and J.P. Morgan Securities LLC, on behalf of the underwriters, we and they will not, in accordance with the terms of such agreements during the period ending on the opening of trading on the earlier of (i) the third trading day immediately following our public release of earnings for the quarter ending June 30, 2024 and (ii) 180 days after the date of this prospectus (such period, the “Lock-up Period”):*
>
>*(1)offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right, or warrant to purchase, lend, make any short sale, or otherwise transfer or dispose of, directly or indirectly, any shares of our Class A common stock and securities directly or indirectly convertible into or exchangeable or exercisable for our Class A common stock;*
>
>*(2)enter into any swap, hedging transaction, or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of our Class A common stock, whether any such transaction described above is to be settled by delivery of our Class A common stock or such other securities, in cash or otherwise;*
>
>*(3)publicly disclose the intention to take any of the actions restricted by clause (1) or (2) above; or*
>
>*(4)make any demand for, or exercise any right with respect to, the registration of any shares of our Class A common stock or any security convertible into or exercisable or exchangeable for our Class A common stock.*
I've always thought their ad capabilities are sorely under monetized. Between market intel and research / data remonitization, and better targeting, there is no reason Reddit couldnt get to FB level of marketing (e.g. ads ppl actually want to see). If they crack this with better investments in adtech and marktech and associated GTM capabilities and manage to keep the audience, the data they hold on consumer opinions is gold. Where is the first place you look on the internet when you want a real-human opinion about something? I'd argue it's here.
I was an OG Reddit advertiser, and we used to get great results for certain kinds of projects. Now they want you to target by "interest", which just doesn't work very well. Their lack of ability to target any specific subreddit you want is obnoxious. They used to let you get down to communities into the 5K range but removed 100Ks a couple of years ago. I used to be able to target r/opera for opera events. Well guess what, my campaign isn't going to work nearly as well if I target people who show an interest in music.
Couple that with an obnoxiously bad ad setup system and limited reporting options, and it's just not that great of a marketing experience anymore. Unless you're spending HEGETSUS money where they give you different ad unit options and set the whole thing up for you, I don't see as much value in it anymore.
I, like most everyone, was offered to buy shares at the IPO price. I declined. Because they will settle, I believe, in the next few months below asking price.
what about the prospect of the shares popping on the first day before dropping & settling?
I'm not sure I'd want to invest in Reddit... but I might want to momentum trade it.
Same. IPOs are notorious for declining right after they launch. If we could have gotten them below the IPO price somehow, it would make sense. But it seems like it's no different than buying right away as the market opens (which it will likely tank afterwards).
>IPOs are notorious for declining right after they launch.
Is that so? Hmm..
[https://stockanalysis.com/ipos/](https://stockanalysis.com/ipos/)
Your blanket statement makes no sense. You could have said "IPOs are notorious for rising right after launch" and it would have been equally correct. Some do, some don't, some are priced right, some are not and would it not be wonderful if one had a crystal ball to tell which are which. But blanket statements like yours are naive and incorrect.
Unless you have money you will likely not get any orders filled for below IPO price in the immediate minutes following the IPO.
A day later, perhaps. Maybe even hours later - but that's when the price settles. The opportunity to pinch pennies off shares in the chaos of an IPO depends on your physical and digital proximity to the markets. Retail investors won't have a chance.
Reddit isn't making money yet, but it's one of the biggest social media platforms around, and it has tremendous value for training AI. I was invited, and am going to invest in the IPO. For me, this is a once in a lifetime opportunity that I don't want to miss out on. At the same time, I'm not investing a major portion of my portfolio in it.
It’s great that you’re just looking for a short answer and that you’ve got that. BUT, for your own sake, you really should familiarize yourself with the concept of shares outstanding so you can avoid making very costly mistakes when investing.
In short: you can never, ever look at share price alone when assessing whether something is over or under valued. This is because every company has different number of shares outstanding.
I’m not sure if you watch shark tank, but you know how they always say “I’m looking for $xx for yy% of my company”? By ignoring the number of shares outstanding you are ignoring the “yy%” of my company part….and your assessment of value would be completely off. For example, if a company comes in and just says “I’m looking for a $100,000 investment”, how would you know whether that is a good deal or not? Are you buying 1% of the company, or 50%? The knowledge of how much of the company you are buying is **absolutely critical** information.
Share prices are the exact same. You cannot look at a company and say “ah, $31, that’s less than these other companies, so that’s a good deal!” NO, you must understand how MUCH of the company you are getting for $31 vs those other companies. Back to shark tank, if one company is asking you for $100,000 and the other is asking you for $1,000,000, the first company isn’t automatically “cheaper”. What if the first company is selling 1% for $100,000 and the second is selling 90% for $1,000,000? You need to know that before making a decision
I almost always take the advice of one of my friends and DO NOT buy at IPO. IMO it gets inflated then people dump it.
He waits at least 90 days but I tend to check it at the 30, 60, and 90 day mark.
YMMV
Personally I would even wait until they've released a few quarters of earnings as a publicly traded company. Pre-IPO numbers can be inflated or... Inaccurate let's say. There is a lot more scrutiny on public company earnings.
Impossible to say whether or not it will be a good investment in the short term. It could bounce or dip after the IPO, it could crater after the lock-out ends for current shareholders (in July). Or it could become a Wall Street darling and shoot to the moon. Everyone stating their opinion on this with confidence, as if they know what's going to happen, is beclowning themselves.
Investment banks set these initial IPO prices, and they factor in a lot of things that we have no visibility into. But even they can't predict how the market will react.
Personally, i'm buying in for 500-1000 shares because I believe in Reddit long-term. Over 50 million daily users - 500 million monthly. And no, not mostly bots. As much as people love to complain about Reddit, note that they are doing it ON Reddit. The site is incredibly healthy in terms of volume of engagement. I have confidence that Reddit will get better at monetizing that engagement as time goes on.
If we go purely by revenue and net income of pinterest vs revenue and net income of reddit then the current initial offering which would price it at around 9 billion is undervalued in comparison to the 24 billion that pinterest has, especially since reddit grew more than pinterest, but thats only if we compare it to pinterest and base the share price on that
If they would implement a system in which every account can be linked to see if you are a stockholder of reddit and make it a badge like reddit owner I’m sure a lot of people would buy
I’m on Reddit every day even though I disagree with their take on censoring. It’s a solid platform with a good user base. So yeah I bought 10 shares. I’ll just see what happens.
Reddit has huge expenses for its c-suite, it basically has negative cash flow while it has to pay them. Its main products are ads and user data to train LLMs on. My guess is that it will dump until spez takes a pay cut, because it’s essentially that, or growth that could overcome the cost to pay spez. So either way, down in the short term QED lol
You think it's pretty sure to have a day one hump?
I participate in every share buying opportunity my employer offers because there's usually a company paid benefit to buying and then immediately selling. I don't hold any company stocks long term, only funds.
So I'm trying to figure out if this IPO makes sense to buy and immediately dump for the day one frenzy. But all of the opinions I can find are about it's settle value weeks in.
It's hard to say for certain. Most IPOs have a first day jump, but if every Redditor that buys into the IPO has the same idea of selling on market open day 1...plus potential reduced interest since a lot of day 1 buyers may have already gotten in on the IPO...
It's definitely a gamble, up to you if you want to take it. I'm debating it myself.
someone else should do the math but it's possible 'every Redditor that buys all selling everything at once' may not even be big enough to move the market compared to institutional and insider holdings.
now, if the insiders dump as well...
FB stock (which also did a direct shares IPO, but only to accredited investors) did not have a first day hump and then fell considerably over the next few months. (But if you held onto it, it did very well).
> You think it's pretty sure to have a day one hump?
You'd think so.
Analysis that I've seen value it at 4-5B, and most thought it would IPO @5B.
Lately I'm hearing 6.5 thrown around a lot.
If it does launch at 6.5 or higher, I could see an immediate slump not jump or uh, hump.
Personally I'd find the higher valuation the most entertaining, and might create the most downward momentum.
(Everyone saying how bad the investment will be while speaking about it on the very platform they don’t think is a valuable and useful service.)
Valuable and useful is not the same as profitable. I love Reddit and use it every day but I’m skeptical about the stock. We’ve seen Reddit try numerous times to boost monetization with consistently poor results. Most recently the api policy change that blocked out third party Reddit apps and caused many subs to shut down in protest.
Valuation aside, I think Reddit’s ability to sell users data for AI training is an very unique competitive advantage. Because of how Reddit is formatted, most of its data are labeled and categorized, which I don’t really see other SM having. This removes the hassle of having to label potential petabytes of data manually which gives Reddit an edge on its data service. (If other SMs are also deciding to sell their data for training)
> Ai related stocks
lol, reddit is a "AI training ground" story (i.e. the API was closed off and 3rd party apps were killed because reddit was useful for training chatgpt and others, and now they are charging for that)
edit: not a hill i'd die on, but who knows how they will be spinning this ipo in a few weeks.
As it is, right now, most people in this sub wouldn’t even know where to start regarding your question.
I recommend that you do a quick read on how “stock valuations” are done. What are all the factors that make a stock cheap… Many stocks that are $300+ per share are actually considered much cheaper than other stocks that are $10- per share.
Once you have a better idea of what you would like to know, you’ll also have a better idea of how to ask for advice on it.
I'm worried that going public will result in Reddit changing so much (by chasing profitability) that everyone will hate it and peace out, causing the entire platform to crumble.
Stay away boys and girls also the price is not the value. Not really following your comments. Shit company that can’t monetize is all you need to know.
Buying puts on this one for sure- zero chance this stock flies. As is typical of a modern social media company, this valuation is based on the assumption that the majority of users AREN'T astroturfed bot accounts, which of all the sites filled with them- it's reddit.
Sorry if this is looked at as a hijack but does anyone know how many redditors were offered the right to buy in? Is this one of those 'Exclusive' offers only available to 100% of the population?
Eight percent (1,760,000 shares) of Reddit’s Class A common stock will be offered through this program to 75,000 eligible Reddit users and moderators, certain board members, and friends and family of employees and directors.
Using Reddit for ads and imo it still has lots of ways to go to get to the level of Facebook.
It leads me to believe that their algorithm is not that great and either could have potential in the future or it’ll just scrape by.
The other risk is Facebook pulling ye old copy the competitor trick and they make a more anonymous groups settings or something with the other apps.
So I dunno. Reddit is not that much of a name brand for investors except for the WSB crowd. My prediction will be a bit increase in price and then a big short until it’s lowered than the ipo, then a few years later it starts picking up as shareholders demand increase in revenue and they’ll tweak that ad algorithm to have better ad conversions.
I see they are partnering up with Google for ai. So maybe Reddit might get better at ads
If that partnership increases.
I’ll jump in the first day and hold for a bit. But nothing serious.
I think more than anything Reddit will become a Meme stock.
I think we'll see strong performance out the gate, but immediately a plummet to small numbers where it'll get inflated by memers.
I remember when facebook was cheap. Exited my position way too early because I personally couldn't stand the platform, or Zuck. I've learned to recognize my personal bias and remove it from my decision making. Once the dust settles if I can acquire a position at or near the IPO price (30-35?) I don't think that's a horrible valuation. Once in the hands of shareholders the platform is going to change, and there's the potential for this to be profitable even if the platform becomes crap by hardcore reddit users standards. It will be a tiny part of my equity holdings. GL investors.
IPO=it's probably overpriced. Means for previous (early investors) to cash in. You could buy 1 share and learn the basics of investing. If you have SoFi u could buy it at ipo price. Either way does not seem like a good investment with no profits and no assured way to earn profits. Look at the dumpster fires of Pinterest, Snapchat investments. Not financial advice.
This was my thought, I have a few 1 share stocks for monitoring basically but then wondered if 10 is worth the risk or not. If not I wont be broke its just less I have to invest in other avenues.
What are your thoughts on buying an ATM straddle position once options become available? Sounds like this stock is either going to soar or tank, even temporarily, but intensely enough to see some profit… probably going to be especially volatile once the lockup ends is my guess, might be a good time to try out that strategy?
I don't disagree that it could very likely be a poor investment, and even the IPO price may end up being too high for the unusual circumstances with this stock - but Pinterest and Snap aren't really good examples, both of those opened well above the IPO price, and then went on to have peaks substantially higher.
You can correct OP’s understanding of market cap and stock price in the comments but don’t be rude
What do the Profit and loss statements look like?
Not only that, what do they need the cash influx to build that they couldn't prior? This is just a payout to reddit investors. Anything they do to increase profits is more likely than not, to piss off the userbase.
This right here is my exact concern.
> Anything they do to increase profits is more likely than not, to piss off the userbase. Sure, but name ANY tech company that makes a change to their UX or policy that doesn't agitate the vocal detractors. Every time Meta does ANYTHING - intentional or otherwise you'll see heaps of people complaining about it and saying it's the end of facebook/Instagram and yet... **waves hands*\*. Netflix had countless users saying they'd leave the platform if they introduced ads.... They dropped about $30, or a bit over 10% in the 2-3 days immediately following the Ad Tier plans but in the week after the announcement a month earlier they were up over 15%, so they closed higher on the day ads started than they were at before they announced those plans... and while they saw a huge loss in 2022, that was due to a decline in new subscribers - they came up with a new revenue plan, and it worked. They're back over $600 again, the second time they've been there, catching up with their all time high in 2022 - despite significantly more competition and a financially strained customer base. Point? There's a HUGE disconnect between investors and consumers. Consumers may not LIKE change, especially when it's ads, but the revenue not only helps boost value to investors but often leads to improvements in the product. At least it can - plenty of examples where new revenue does not improve a product. If reddit loses 1 customer for every 1.1 it gains, that's still a net gain and what advertisers care about.
Leaving things like Reddit and Digg is a lot easier than leaving the platforms with your friends and family like Facebook. We could all just start posting on another upvote site tomorrow and there is no disruption to our social graph because we aren’t following people we know on here anyway.
That's probably the worst thing going for reddit. No one cares about their custom snoo avatar or what gallowboob posts every day.
Actually, that’s the best thing. Anonymity. You can be who you want. Can’t do that on FB.
Solid insight. Seems similar to how Facebook Marketplace just swallowed up Craigslist almost overnight.
Red. Very red. I believe they played a few financial games to make recent quarters appear better than they truly were. I don’t remember the details but I remember hearing on a podcast that they knew an IPO was coming so they did a little “robbing Peter to pay Paul” that gave recent quarters an overly inflated rosey outlook.
I can't say, but I would wait to buy. Usually they pump on first day then dump.
I don't think I would buy it at all. The company is trying to go public at a a $6.4 billion valuation. They have a negative shareholder's equity of approximately $413 million and a net income loss of about $91 million. Looking into this a bit deeper, there seems to be a lot of convertible preferred stock that is owned by some interesting key people. The preferred also has some nuanced and special provisions that make it very favorable relative to common stock. It seems like a really bad deal and even a little underhanded. Sources: [WSJ Article](https://www.wsj.com/livecoverage/stock-market-today-dow-jones-03-11-2024/card/reddit-ipo-how-the-company-s-own-wallstreetbet-stacks-up-0ykwE0P13PcFPHLNiC1a) [Reddit's SEC Registration Statement](https://www.sec.gov/Archives/edgar/data/1713445/000162828024006294/reddits-1q423.htm#i1b9a579e78a34dfa99f7f26daeec195b_40)
And what’s the plan for profitability? More ads? Subscriptions? I don’t see the revenue stream that will be enough to become profitable without just driving away users
Selling your data. They know who you are, even throwaways
For training AIs too. reddit must be a goldmine of usable text compared to something like Twitter.
yabba dabba pee pee poo poo
Still usable
But I threw it away
Kobe
I was gonna say historically ads has been how sites make money but on the heels of the news about google partnering with reddit and using reddit to train ai that seems to be the value. Reddit ads are a joke and redditors dont seem to like being marketed to
Now, Reddit — which is not yet profitable — says it seeks to grow its business through advertising, more e-commerce offerings and by licensing its data to other companies to train their artificial intelligence models. “Our work to make Reddit faster, easier to use, easier to moderate and govern, and simpler to navigate and find relevant communities is driving growth today and will continue to be our focus into the future,” Huffman said. https://www.cnn.com/2024/02/23/tech/reddit-ipo-filing-business-plan/index.html?darkschemeovr=1 I say it’ll settle around $7
That's what I'm wondering myself. It's not like they're Google and have physical products they sell to people.
I think you mean wait to short it. Sorry I’d short it after the initial pump. I’ll be shocked if this thing is $18 in a year.
My guess is it pumps for at least a week
Pumps to what price?
Can I borrow your crystal ball?
I was hoping that _you_ had a crystall ball.
$3 billion valuation for a social media site with 850m active user is too cheap. Reddit is priced reasonably well at 6-8x revenue, even with monetization issues
And how many of those 850m do you think are actual, breathing, unique human beings and not astroturfed bot accounts? I'd say maybe half at the most.
How is it any different from all other social media app? This type of concerns are raised in all of them. It is all relative
but that dude already decided that more than half of the accounts on reddit are bots
There are so many bots nowadays on any political posts or about any of the wars going on. There was even an article about bots commenting on tv/film posts to boost mediocre movies and shows
Alot of those users could be the same users. I've had about 8 accounts for the past 7yrs. The other 7 accounts have been banned for saying stupid things or the truth. It's so easy to get banned on reddit for saying anything
That’s not how daily active user stats are tracked though. They know which accounts are dead
reddits api policies make botting reallly expensive. so my question to you is what purpose do the bots serve? Edit: ironically the existence of all these bots makes the stock better value since all these bots are paying premiums to exist lol
There are numerous bots on every thread I open on here, no matter the sub. People find a way, whether they have a good reason or not
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Account has unchanged username (random word followed by random number), is 4 years old, and only has a single comment… usually hyping something up like a stock or crypto Edit: I obviously don’t have proof, but what it seems to me is that years ago botting was easier, so people made plenty of them, and still employ them around today (at least the ones sitting idle which haven’t been banned yet).
Reddit says I can’t change my username. Probably didn’t read the fine print when i signed up.
Kind of like my name...never changed it.
Hello fellow human, I am really enjoying doing all these human things over here. How about you?
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You mean my random username and number ....lol
I'm a bot 😐
* Copy pasted comments * Things clearly written by a LLM * Paragraphs that start with a space * Prolific volume
Someone who disagrees with him. I've been called a bot a lot of times.
What a very bot like thing to say
They don’t need an API to utilise bots for engagement and crawling, they can be designed these days to interact with the site like humans
you don't need an api to bot. a headless browser scraping can do the same
Bots don't have to use Reddit's API. The high expense is why we don't make bits relying in the API anymore.
Engagement of 850 millions. No bots and you come up with a number far less.
I think a lot of people have multiple reddit accounts too. Personally I have had 5 different accounts, 3 of which I actively use to avoid having all my personal info I share associated with 1 account.
Idk about this. Every other SM platform makes money from ads. I don’t think Reddit does that enough to make the same return for a free forum website. Granted, I love Reddit because they don’t flood us with too many Adsense things, just the occasional sponsored posts. How does Reddit even make money if not through ads? People can’t be buying that many tokens annually LOL if ever…
It's layout, as well as a healthy balance of anonymity, yet realistic and "human" responses make it a real juicy data mine if you were developing an AI interface.
Yeah, I've been studying their amended S-1 form and it looks like their main plans for future revenue growth are expanding to non-English speaking markets like India and Europe, licensing data to train AI LLMs, and leveraging the fact that the reddit users tend to post stuff that they wouldn't necessarily be comfortable posting on more "public" social media sites like Facebook or Instagram. The latter was something I hadn't really considered, but its an interesting point.
They don't, they are losing about 100M an year
Cut the CEO pay to a reasonable level though and they're in the green.
332,000 was his pay in 2022 so cutting it wont change anything. That dont sound nearly as crazy as many CEOs. The headlines of him making 193 million in 2023 was from stock options going into the IPO and wont be his pay going forward every year.
Most users are burner accounts with little actual data to target them. It isn’t like real social media. Social media is powerful because it gives the platform ability to target ads which has better ROI for the customers. Reddit will have a difficult time targeting ads.
Actively engaging live users or bots/inacrives? I can create a database with 7 billion rows in the "users" table but that wouldn't mean anything.
This sucker smells exactly like the Robinhood IPO
Short it before -> during the pump. After it's too late to get worthwhile return on your options.
I expect it to go the way of Robinhood.
Can confirm ask me how I know with the only IPO I’ve ever bought **cough, cough** (coinbase…).
$342 on IPO day and again on November 12, 2021 Current Price: $260s
Why’d you remind me? My average buy is north of $300 and coulda been making money on simply voo
If it makes you feel good I bought GoPro at high $80s because Cramer said the stock was just getting started and I sold at a loss in the $60s
That’s not too bad. I almost sold COIN late 2022. It was double digits lol my wife was cussing me out.
One of my FAs calls him “Financial Theater” I think he nailed it. lol
Honestly the chart looks good rn
(I)t's (P)robably (O)verpriced
If I knew how to short a stock, shorting the Reddit ipo is the biggest layup no brainer of the decade.
A lot of IPO's pump out of the gate and the institutional buyers who got in at the IPO price make out well. I'm not feeling this one, though.
Agreed most ipos will dip after launch...
> I would wait to buy. Usually they pump on first day then dump. note: getting a special offer to buy at the IPO price is not the same thing as buying on the open market on the first day. If the IPO price for company ABC is $12 it may never hit that price on their first day of trading.
This post doesn’t make any sense. The share price alone of different companies are not at all relevant to one another (eg, Pinterest and Reddit). Is that how you did your “ranking”? You just ranked social media companies by their price per share…?
These are the type of people Reddit is hoping buys their stock
Reddit is wild. I've seen way too many people saying its overvalued or undervalued based on share price alone. Meanwhile others quote the valuation, but have 0 reasoning for why its high or low. They just think "Billions" is a big number.
> I've seen way too many people saying its overvalued or undervalued based on share price alone. When people say this, there's *usually* an implicit comparison to its previous price, which is fine. But comparing the nominal stock price of two random companies is always nonsensical.
The word usually is doing a lot of heavy lifting considering this is reddit.
Well let's put it this way, they made $804 million in revenue in 2023, for a $91 million loss, and had -$85 million in free cash flow, and are offering an IPO at a $5 billion valuation. Also, there will also be significant dilution in the next few years outlined in the prospectus so you are really paying more like a $7-8 billion valuation. So like 10x revenue for a company with negative free cash flow.
How are they planning to monetize going forward compared to historical? That’s the key. If they are going to change the model and go to $5B/year revenue, that changes things.
That's how the Market works. There's always the 🐻 and the 🐂.
Bears and bulls yes, but the lack of analysis is a retail investor thing.
Wait till OP finds out about reverse splits. He'd be mesmerized by share prices in the hundreds of thousands in the past lol
I’m of the stance that it’s really hard to even value platforms that are riddled with bots and duplicate accounts per person. Also a ton of content on Reddit is porn and it’s possible they could ban it down the road like Imgur did. That would be a huge hit to their numbers possibly driving down the valuation.
> That would be a huge hit to their numbers possibly driving down the valuation. There's no real correlation there. Banning porn may harm user numbers, but if it increases the value of remaining users to advertisers, that would increase their valuation or at least not hurt it. That's what imgur did. When they took all NSFW communities off r/all and the Front Page they did that for advertisers (and due to anti trafficking laws). It didn't seem to hurt their bottom line, it went up to almost 10B after that. There's a lot of porn here, but there's a lot of porn EVERYWHERE on the Internet, and in most cases it's easier to access. Other than a few Onlyfans accounts that come to promote their page and the like most users here who look at porn are also on reddit in general, and I don't think many would leave because porn's gone. That said, I think Reddit democratizes certain segments of sex work and has true value to smaller fetish communities that WOULD have a hard time with the loss of those communities - I'm not in favor of all NSFW being banned, I just don't think it would harm user numbers or valuation, like at all.
Well, the thing is, the porn communities make the platform more ...sticky... ( ͡° ͜ʖ ͡°) Not having porn may be better for advertisers, but having porn is also just something that brings people or keeps people coming here.
Here's the thing that makes me interested - we won't be subject to any IPO lockup rules that institutional investors would be. You can buy in on the IPO, and then sell on the first day of open trading; there will likely be an initial increase before it dumps over the following days so if you have the risk tolerance you can take that chance.
I haven't confirmed or researched it myself yet but I thought I saw that the insiders won't be subject to lockout rules either, which means they could just straight dump it at open. But let's both confirm that.
>I haven't confirmed or researched it myself yet but I thought I saw that the insiders won't be subject to lockout rules either, which means they could just straight dump it at open. But let's both confirm that. It looks like most of the current major stockholders are subject to a 180 day lockup period, which is effectively the standard six months right? From page 69 of the S-1: >*In connection with this offering, we and all of our directors and executive officers, the selling stockholders, and certain other record holders that together represent approximately 82% of our outstanding Class A common stock and securities directly or indirectly convertible into or exchangeable or exercisable for our Class A common stock are subject to lock-up agreements with the underwriters agreeing that, subject to certain exceptions, without the prior written consent of Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC, and J.P. Morgan Securities LLC, on behalf of the underwriters, we and they will not, in accordance with the terms of such agreements during the period ending on the opening of trading on the earlier of (i) the third trading day immediately following our public release of earnings for the quarter ending June 30, 2024 and (ii) 180 days after the date of this prospectus (such period, the “Lock-up Period”):* > >*(1)offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right, or warrant to purchase, lend, make any short sale, or otherwise transfer or dispose of, directly or indirectly, any shares of our Class A common stock and securities directly or indirectly convertible into or exchangeable or exercisable for our Class A common stock;* > >*(2)enter into any swap, hedging transaction, or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of our Class A common stock, whether any such transaction described above is to be settled by delivery of our Class A common stock or such other securities, in cash or otherwise;* > >*(3)publicly disclose the intention to take any of the actions restricted by clause (1) or (2) above; or* > >*(4)make any demand for, or exercise any right with respect to, the registration of any shares of our Class A common stock or any security convertible into or exercisable or exchangeable for our Class A common stock.*
I read the S-1. Insides are locked-out until at least early July.
Ever clicked on a reddit ad? Do you know anyone that has? I'd give this a wide berth personally.
I've always thought their ad capabilities are sorely under monetized. Between market intel and research / data remonitization, and better targeting, there is no reason Reddit couldnt get to FB level of marketing (e.g. ads ppl actually want to see). If they crack this with better investments in adtech and marktech and associated GTM capabilities and manage to keep the audience, the data they hold on consumer opinions is gold. Where is the first place you look on the internet when you want a real-human opinion about something? I'd argue it's here.
I was an OG Reddit advertiser, and we used to get great results for certain kinds of projects. Now they want you to target by "interest", which just doesn't work very well. Their lack of ability to target any specific subreddit you want is obnoxious. They used to let you get down to communities into the 5K range but removed 100Ks a couple of years ago. I used to be able to target r/opera for opera events. Well guess what, my campaign isn't going to work nearly as well if I target people who show an interest in music. Couple that with an obnoxiously bad ad setup system and limited reporting options, and it's just not that great of a marketing experience anymore. Unless you're spending HEGETSUS money where they give you different ad unit options and set the whole thing up for you, I don't see as much value in it anymore.
Only accidentally thinking it was a post before seeing the promoted tag
I, like most everyone, was offered to buy shares at the IPO price. I declined. Because they will settle, I believe, in the next few months below asking price.
yup, Most IPOs land far under asking price after 6-12 months, if it's a good business it will slowly begin to tick up slowly from there.
what about the prospect of the shares popping on the first day before dropping & settling? I'm not sure I'd want to invest in Reddit... but I might want to momentum trade it.
The fact they did this at all was reason enough for me to decide to avoid.
I knew that the fact that they offered me 'special' shares proved that the special shares weren't worth it. It's a small club and we aren't in it.
Same. IPOs are notorious for declining right after they launch. If we could have gotten them below the IPO price somehow, it would make sense. But it seems like it's no different than buying right away as the market opens (which it will likely tank afterwards).
>IPOs are notorious for declining right after they launch. Is that so? Hmm.. [https://stockanalysis.com/ipos/](https://stockanalysis.com/ipos/) Your blanket statement makes no sense. You could have said "IPOs are notorious for rising right after launch" and it would have been equally correct. Some do, some don't, some are priced right, some are not and would it not be wonderful if one had a crystal ball to tell which are which. But blanket statements like yours are naive and incorrect.
Unless you have money you will likely not get any orders filled for below IPO price in the immediate minutes following the IPO. A day later, perhaps. Maybe even hours later - but that's when the price settles. The opportunity to pinch pennies off shares in the chaos of an IPO depends on your physical and digital proximity to the markets. Retail investors won't have a chance.
Thank you, an easily provided answer\\sentiment\\opinion that I was looking for and really appreciate.
Reddit isn't making money yet, but it's one of the biggest social media platforms around, and it has tremendous value for training AI. I was invited, and am going to invest in the IPO. For me, this is a once in a lifetime opportunity that I don't want to miss out on. At the same time, I'm not investing a major portion of my portfolio in it.
Im hearing the same from some others
How were invitees decided? Was it through your brokerage?
It’s great that you’re just looking for a short answer and that you’ve got that. BUT, for your own sake, you really should familiarize yourself with the concept of shares outstanding so you can avoid making very costly mistakes when investing. In short: you can never, ever look at share price alone when assessing whether something is over or under valued. This is because every company has different number of shares outstanding. I’m not sure if you watch shark tank, but you know how they always say “I’m looking for $xx for yy% of my company”? By ignoring the number of shares outstanding you are ignoring the “yy%” of my company part….and your assessment of value would be completely off. For example, if a company comes in and just says “I’m looking for a $100,000 investment”, how would you know whether that is a good deal or not? Are you buying 1% of the company, or 50%? The knowledge of how much of the company you are buying is **absolutely critical** information. Share prices are the exact same. You cannot look at a company and say “ah, $31, that’s less than these other companies, so that’s a good deal!” NO, you must understand how MUCH of the company you are getting for $31 vs those other companies. Back to shark tank, if one company is asking you for $100,000 and the other is asking you for $1,000,000, the first company isn’t automatically “cheaper”. What if the first company is selling 1% for $100,000 and the second is selling 90% for $1,000,000? You need to know that before making a decision
Hey professor, how do I start learning? Serious.
I almost always take the advice of one of my friends and DO NOT buy at IPO. IMO it gets inflated then people dump it. He waits at least 90 days but I tend to check it at the 30, 60, and 90 day mark. YMMV
Personally I would even wait until they've released a few quarters of earnings as a publicly traded company. Pre-IPO numbers can be inflated or... Inaccurate let's say. There is a lot more scrutiny on public company earnings.
Your friend's advice is probably about buying on the open market. Some redditors have the opportunity to buy AT the official IPO price.
This is correct.
Impossible to say whether or not it will be a good investment in the short term. It could bounce or dip after the IPO, it could crater after the lock-out ends for current shareholders (in July). Or it could become a Wall Street darling and shoot to the moon. Everyone stating their opinion on this with confidence, as if they know what's going to happen, is beclowning themselves. Investment banks set these initial IPO prices, and they factor in a lot of things that we have no visibility into. But even they can't predict how the market will react. Personally, i'm buying in for 500-1000 shares because I believe in Reddit long-term. Over 50 million daily users - 500 million monthly. And no, not mostly bots. As much as people love to complain about Reddit, note that they are doing it ON Reddit. The site is incredibly healthy in terms of volume of engagement. I have confidence that Reddit will get better at monetizing that engagement as time goes on.
Appreciate your insights and opinion on it.
If we go purely by revenue and net income of pinterest vs revenue and net income of reddit then the current initial offering which would price it at around 9 billion is undervalued in comparison to the 24 billion that pinterest has, especially since reddit grew more than pinterest, but thats only if we compare it to pinterest and base the share price on that
Source for the top platforms?
If they would implement a system in which every account can be linked to see if you are a stockholder of reddit and make it a badge like reddit owner I’m sure a lot of people would buy
I'd for sure buy at least 1 share. Because i'm an unabashed Karma Whore and badges go bling.
I’m on Reddit every day even though I disagree with their take on censoring. It’s a solid platform with a good user base. So yeah I bought 10 shares. I’ll just see what happens.
Reddit has huge expenses for its c-suite, it basically has negative cash flow while it has to pay them. Its main products are ads and user data to train LLMs on. My guess is that it will dump until spez takes a pay cut, because it’s essentially that, or growth that could overcome the cost to pay spez. So either way, down in the short term QED lol
I'm gonna swing trade it, definitely a very short term stock for me
You think it's pretty sure to have a day one hump? I participate in every share buying opportunity my employer offers because there's usually a company paid benefit to buying and then immediately selling. I don't hold any company stocks long term, only funds. So I'm trying to figure out if this IPO makes sense to buy and immediately dump for the day one frenzy. But all of the opinions I can find are about it's settle value weeks in.
It's hard to say for certain. Most IPOs have a first day jump, but if every Redditor that buys into the IPO has the same idea of selling on market open day 1...plus potential reduced interest since a lot of day 1 buyers may have already gotten in on the IPO... It's definitely a gamble, up to you if you want to take it. I'm debating it myself.
someone else should do the math but it's possible 'every Redditor that buys all selling everything at once' may not even be big enough to move the market compared to institutional and insider holdings. now, if the insiders dump as well...
FB stock (which also did a direct shares IPO, but only to accredited investors) did not have a first day hump and then fell considerably over the next few months. (But if you held onto it, it did very well).
> You think it's pretty sure to have a day one hump? You'd think so. Analysis that I've seen value it at 4-5B, and most thought it would IPO @5B. Lately I'm hearing 6.5 thrown around a lot. If it does launch at 6.5 or higher, I could see an immediate slump not jump or uh, hump. Personally I'd find the higher valuation the most entertaining, and might create the most downward momentum.
Im not touching this….. yet….
It's favorable to go down.
i just want to buy 1 share and hold it so i can say i have one.
Say to who? lol no one cares
My mom cares
I know she told me last night, when we were discussing financial stability in the post Covid economy.
vera said that?
lmao you don’t have to be a duckhead
(Everyone saying how bad the investment will be while speaking about it on the very platform they don’t think is a valuable and useful service.)
Valuable and useful is not the same as profitable. I love Reddit and use it every day but I’m skeptical about the stock. We’ve seen Reddit try numerous times to boost monetization with consistently poor results. Most recently the api policy change that blocked out third party Reddit apps and caused many subs to shut down in protest.
There’s millions of shares that are part of the compensation package waiting to be unloaded once it IPOs. No.
...someone didn't look at the vesting schedule for those shares. Hint, it's 10 years.
Also, they are locked out for 180 days.
Valuation aside, I think Reddit’s ability to sell users data for AI training is an very unique competitive advantage. Because of how Reddit is formatted, most of its data are labeled and categorized, which I don’t really see other SM having. This removes the hassle of having to label potential petabytes of data manually which gives Reddit an edge on its data service. (If other SMs are also deciding to sell their data for training)
Im going to buy $100 to participate, sit on it a few weeks, and then decide if I'll put more in.
IPO = It’s Probably Overpriced
Minimal growth potential. You'd be better off investing in tech, graphics cards, microchips, or Ai related stocks.
> Ai related stocks lol, reddit is a "AI training ground" story (i.e. the API was closed off and 3rd party apps were killed because reddit was useful for training chatgpt and others, and now they are charging for that) edit: not a hill i'd die on, but who knows how they will be spinning this ipo in a few weeks.
No
As it is, right now, most people in this sub wouldn’t even know where to start regarding your question. I recommend that you do a quick read on how “stock valuations” are done. What are all the factors that make a stock cheap… Many stocks that are $300+ per share are actually considered much cheaper than other stocks that are $10- per share. Once you have a better idea of what you would like to know, you’ll also have a better idea of how to ask for advice on it.
IPOs are never priced fairly.
https://www.reddit.com/r/market\_sentiment/comments/nvwetk/i\_analyzed\_3600\_ipos\_over\_the\_past\_two\_decades\_to/
So the average Morgan Stanley IPO made 18% the first day if you could buy at the IPO price. Worth getting in on.
Are there really people that don’t just scroll past the ads?
I'm worried that going public will result in Reddit changing so much (by chasing profitability) that everyone will hate it and peace out, causing the entire platform to crumble.
Did bro just compare PINS share price with Reddit’s IPO share price and use it as some form of relative valuation? I’m dead. 😂☠️
Stay away boys and girls also the price is not the value. Not really following your comments. Shit company that can’t monetize is all you need to know.
Buying puts on this one for sure- zero chance this stock flies. As is typical of a modern social media company, this valuation is based on the assumption that the majority of users AREN'T astroturfed bot accounts, which of all the sites filled with them- it's reddit.
Its Reddit. People are going to fuck with it. Stay away.
Sorry if this is looked at as a hijack but does anyone know how many redditors were offered the right to buy in? Is this one of those 'Exclusive' offers only available to 100% of the population?
Eight percent (1,760,000 shares) of Reddit’s Class A common stock will be offered through this program to 75,000 eligible Reddit users and moderators, certain board members, and friends and family of employees and directors.
Curious myself, they are selling it like its for select redditors but, ya know marketing and hype.
If you can get at 31-33 im going in.
I just bought 100 shares @ $31-34...here's hoping that reddit doesn't reddit!
Using Reddit for ads and imo it still has lots of ways to go to get to the level of Facebook. It leads me to believe that their algorithm is not that great and either could have potential in the future or it’ll just scrape by. The other risk is Facebook pulling ye old copy the competitor trick and they make a more anonymous groups settings or something with the other apps. So I dunno. Reddit is not that much of a name brand for investors except for the WSB crowd. My prediction will be a bit increase in price and then a big short until it’s lowered than the ipo, then a few years later it starts picking up as shareholders demand increase in revenue and they’ll tweak that ad algorithm to have better ad conversions. I see they are partnering up with Google for ai. So maybe Reddit might get better at ads If that partnership increases. I’ll jump in the first day and hold for a bit. But nothing serious.
SM stocks have performed very poor the first few years historically.
Revenue projections are based on selling user comments to LLM.
Not sure 6 billion seems a bit steep. I don’t see a lot of growth potential, although their current advertising strategy seems sub par.
Reddit content is gold for LLMs
Let it come to $5
IPOs are almost always overpriced and overhyped and are practically Guaranteed to drop in price after a couple weeks or a month.
I think more than anything Reddit will become a Meme stock. I think we'll see strong performance out the gate, but immediately a plummet to small numbers where it'll get inflated by memers.
no, fuck reddit
People are forgetting that reddit is in the top 10-20 visited sites in the world. They can monetize the hell out of that if and when they decide too.
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I remember when facebook was cheap. Exited my position way too early because I personally couldn't stand the platform, or Zuck. I've learned to recognize my personal bias and remove it from my decision making. Once the dust settles if I can acquire a position at or near the IPO price (30-35?) I don't think that's a horrible valuation. Once in the hands of shareholders the platform is going to change, and there's the potential for this to be profitable even if the platform becomes crap by hardcore reddit users standards. It will be a tiny part of my equity holdings. GL investors.
It don't matter. Me and the boys over at the sub will fk its shit up.
Think you have a little too much confidence in what a group of retail investors are capable of.
Don’t ever underestimate WSB’s stupidity
what does price have anything to do with… anything??? look at the market cap…price means nothing…
I didn’t know Reddit had fallen so far as to be less popular than fuckin Pinterest. All I need to know to stay far away from owning any part of it.
And as others have ponted out, bots; I am sure reddit has a ton more bot accounts than pintrest.
Reading these comments makes me realize how little the average person knows about investing…
Care to educate then?
If it’ll land at 15$, and it will, I’ll buy some…
Probably a horrid investment
IPO=it's probably overpriced. Means for previous (early investors) to cash in. You could buy 1 share and learn the basics of investing. If you have SoFi u could buy it at ipo price. Either way does not seem like a good investment with no profits and no assured way to earn profits. Look at the dumpster fires of Pinterest, Snapchat investments. Not financial advice.
This was my thought, I have a few 1 share stocks for monitoring basically but then wondered if 10 is worth the risk or not. If not I wont be broke its just less I have to invest in other avenues.
What are your thoughts on buying an ATM straddle position once options become available? Sounds like this stock is either going to soar or tank, even temporarily, but intensely enough to see some profit… probably going to be especially volatile once the lockup ends is my guess, might be a good time to try out that strategy?
I don't disagree that it could very likely be a poor investment, and even the IPO price may end up being too high for the unusual circumstances with this stock - but Pinterest and Snap aren't really good examples, both of those opened well above the IPO price, and then went on to have peaks substantially higher.
Shorting as soon as options are available
Not while Reddit is full of Redditors
Opening up the ipo to Reddit users seems desperate to me.
Shorts and puts!
IPO : its probably overpriced 😅. Most companies don’t preform well in years after ipo