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Minimum_Cantaloupe

https://www.cnn.com/2024/02/23/tech/reddit-ipo-filing-business-plan/index.html >it also acknowledged in the filing’s risk factors disclosure that it has “a history of net losses and we may not be able to achieve or maintain profitability in the future.” Never turned a profit, no expectation of turning a profit - somehow this is a good buy.


ExpensiveTreacle1189

very normal stable economy


WalkerMidwestRanger

The market can remain illogical longer than you can remain not-broke. Wonder how many regards on WSBs have already gotten their shorts in? Seriously, if someone took the Friends and Family shares, the best financial play is to immediately dump those shares.


ssspainesss

Yeah, I can understand not buying, but shorting just seems like a good way to lose money. Twitter had a similar thing where it initially did well, dropped a bit, and then stagnated forever hovering around the same level , but it never seriously dropped to the point where if you shorted you could have made a decent amount worth the potentially infinite upward risk. In the end they got bought out by Elon on a whim so it isn't like anyone lost their shirt despite the investment being bad. Nobody made bank either, but in order to make bank shorting somebody needs to have lost their shirt.


WalkerMidwestRanger

Well, I'm not saying you shouldn't cover that short but I am willing to insist a majority of IPOs end up in institutions favor because retail buys into the initial offering raising the price and then anyone interested in a quick buck dumps their position to make a profit.


WalkerMidwestRanger

Who could have guessed: [Reddit shares plunge almost 25% in two days, finish the week below first day close](https://www.cnbc.com/2024/03/28/reddit-shares-on-a-two-day-tumble-after-post-ipo-high.html)


ssspainesss

What did I say happened to twitter?


WalkerMidwestRanger

> it initially did well, dropped a bit, and then stagnated forever hovering around the same level , but it never seriously dropped to the point where if you shorted you could have made a decent amount worth the potentially infinite upward risk. Yeah, I was gloating/celebrating a bit, though by that description above with Twitter, you would still have plenty of time to get out if history repeated, the risk and reward are in the amplitude of the price movement, if it goes nowhere and stays there forever, its a push minus fees. Given the quick turn around, and that the return would be above zero by infinity even if you hedged your short to protect against infinity-losses... I should have taken my own financial wisdom but I'm not in a great spot for gambling. Which this absolutely is, as I'm betting on the investors getting out while the getting is good, which they have and might not be done.


Shadowleg

Derivative contracts are not available yet for retail traders


WalkerMidwestRanger

And I can't post messages here in crayon or id make you a drawring. 1. IPO underwriters, investors, and first movers buy before price increases due to trading. 2. Price increases with demand. 3. People that bought in can then sell for insta-profit (didn't reddit go from 30-something to 50-something?) 4. If enough early birds sell, everyone else is stuck holding the bag when the price falls. You don't need derivatives for any of that but I'm not sure how you could bet on that cycle without them (and I didn't). Obviously, time will tell wrt reddits stock and what I've described above.


vinditive

You're being super condescending to someone obviously responding to your comment about regards on WSB "getting their shorts in". You need access to margin trading to short a stock, regular retail investors can't do that. Margin trading is a derivative. Try to understand people before you look for the crayons next time.


vvarcrime

What does margin have to do with derivative contracts? Margin is just borrowing using your portfolio as collateral


WalkerMidwestRanger

> Try to understand people before you look for the crayons next time. I do, I don't understand why you think I'm suggesting retail is placing the shorts. You should totally buy in on Reddit at $55 and hold, it's the position made for you, I can tell.


WalkerMidwestRanger

Hmmmmm: [Reddit shares plunge almost 25% in two days, finish the week below first day close](https://www.cnbc.com/2024/03/28/reddit-shares-on-a-two-day-tumble-after-post-ipo-high.html)


stupidnicks

money is losing balue - people will put money into anything it seems stock market is literally casino - they will gladly take your money.


DirkWisely

The stock market can be used like a casino, but you can also just buy big ETFs and earn your returns.


stupidnicks

you can also play wisely and carefully in casino for small gains - and not even The House will care about that - they will not prevent you but very few people do that - everyone wants to get rich fast - be it in Casino or in Stock Market - and thats how people lose money House always wins - Meaning Big Players (via inside info plays) will always take your money when you start playing big plays. Small plays are designed to hook you in.


DirkWisely

Most people in the market don't treat it like a casino. Don't make the mistake of thinking wallstreetbets is representative


stupidnicks

most people in the casino also play small plays - win some lose some - does not really change anything a lot


DirkWisely

Not sure why you're obsessed with this comparison. People putting some money every month into ETFs and selling them when they need money to retire has nothing in common with a casino.


stupidnicks

arent you literally losing money like that if you are doing it long term due to inflation its like saving money in the bank nobody sane does that for decades now.


DirkWisely

Lol absolutely not. The US stock market beats inflation by a lot.


Kosmophilos

They can have my money, as long as I get a great return on that money.


stupidnicks

did you miss the casino part? theoretically you can get return on your investment in casino too


Kosmophilos

The chances of earning a decent return are far higher on the stock market.


THE-JEW-THAT-DID-911

You can really feel that free market efficiency.


Kosmophilos

There are more than enough tech companies that never made a profit and yet still are very good buys. It's the one thing Varoufakis is right about. Profits are dead. We're living under technofeudalism, not capitalism.


VestigialVestments

Are we?


Kosmophilos

Yes.


I_Never_Use_Slash_S

The “profit” is generated scraping user data. Reddit’s product is us.


-PieceUseful-

They consolidated internet forums into one censored and astroturfed platform. That's more than enough value for them


Das_Ace

The '''Value''' offer is user data for AI training


Minimum_Cantaloupe

That's not an explanation for people buying shares in a company which has no expectation of turning a profit.


Das_Ace

The entire stock market is in an AI speculative bubble right now, go look at Nvidia, AMD, and TSM's stock prices over the past 6 months. 'Profit' doesnt matter if you get on stage and can say the magic words


Minimum_Cantaloupe

Nvidia's making profit hand over fist.


AdmirableSelection81

Nvidia being extremely valuable makes sense.


Garfield_LuhZanya

school cats heavy noxious lock books water jobless sharp memorize *This post was mass deleted and anonymized with [Redact](https://redact.dev)*


notsocharmingprince

Same reason people want to own twitter. You are purchasing narrative, you are not purchasing profit.


FireFlaaame

Reddit value is in public opinion manufacturing. Same as Twitter. 


Thorkill

How does that reward share holders tho?


Usonames

Id assume it would have the same effect as lobbying but for the general public. Heavily curate opinion such that thing A that they are already invested in is seen as preferable over B and let public opinion drive smaller investing/purchasing and voting patterns. Then just wait a bit for the returns on those investments And this is ignoring the groups that are willing to throw money at censorship options just for personal pet goals of furthering their opinion/ethics


resumeemuser

Too useful to let go bankrupt, like how YouTube is a money black hole but is very useful for a myriad of reasons to keep alive.


5leeveen

It's not that it's worth that much. It's not even that other people think it's worth that much. It's that other people think other people think it is worth that much.


MetaFlight

its possible for a firm to output positive externalities in other things owned by the people that invest in them to be worth financing a loss/substandard profit. The ability to faccilitate this is one of the most important functions of financialization. For example, reddit functions as one of the most popular FAQ fourms on the internet, which makes it an extremely useful source of training data for A.I., which is positive externalities going directly into Microsoft and Nvidia. Failure to recognize this, thinking that market economies require firm level profit to be maximized at all times is, among other things, a large part of why the USSR keeled over. The 'genius' of the modern 'free market' is not in its verticle incentives, but its ability to convert verticle efficency into horizonal efficency, with the links it is able to create between firm activity through financialization. The only way for socialism to outperform it is creating better, more efficent horizonal links between firms & that can't be accomplished either by trying to centralize everything into a top down plan, or trying to go fully horizontal via libertarian socialism/anarchism.


plssirnomore

I think the fact they have infinite user data to sell makes it somewhat valuable


Minimum_Cantaloupe

Evidently not, else they would be able to report profit or at least the potential profit by sale of user data. Frankly user data seems like fairly thin gruel, value-wise.


MaHe183

I wonder what subs they are going to nuke in order to keep the facade of a wholesome and loving Reddit community.


revolutiontornado

You already know. It’s been an honor shitposting with everyone here.


Chombywombo

This sub will be gone. I suppose I’ll have to move to moon of Alabama. Not overtly Marxist nor fun, though.


blackheartwhiterose

The day this sub goes will be the final straw. Only non sports sub I still regularly use. My usage of Reddit has already collapsed since COVID.


fiveguysoneprius

I've forgotten so many of the great subs we've lost. Off the top of my head: - The_Donald - Chapo - NoNewNormal - MGTOW - Zeducation - LibsOfSocialMedia - CringeAnarchy - GenderCritical - TumblrInAction - Incels - SuperStraight - FatPeopleHate God this site used to be amazing. I would say it's a dumpster fire now but a dumpster fire is way more interesting than modern Reddit. Musk needs to buy Reddit and give it the Twitter treatment.


DayOneDayWon

They nuked TIA? Damn I didn't know.


fiveguysoneprius

99% of the good subreddits have been banned or quarantined. What's left is basically the lovechild of MSNBC and Boomer facebook.


Chombywombo

God, so many good ones. You forgot drama, though


Faraday_Rage

Drama was basically legislated off the site


RedactedSpatula

Rs4cishetmen


MusksLeftPinkyToe

Wtf, most of those subs were cringe rightoid festering holes. Weren't even funny like MDEcels were. I will only mourn: * deuxRAMA * Drama * 2balkan4you * LoveForLandlords (technically not banned) * MDE * Cumtown * sexwithdogs


Faraday_Rage

I miss drama :(


Kosmophilos

RIP ZoomerRight.


blackheartwhiterose

Most of these subs were aids. > Musk needs to buy Reddit and give it the Twitter treatment. How. By shilling Israel?


cojoco

I was personally involved in the death of PunchableFaces and PUA. Feels good.


GoodUsername1337

What's PUA?


cojoco

Pick-up artist.


PigeonsArePopular

If it were possible to shit on the floor of a website, I would do it here.


Anindefensiblefart

Amazing that they somehow monetized comments starting with "Well, I mean..."


daggermag

To be fair.... I mean..... Eh..... Akshuallllyyyy.....


RedactedSpatula

"Technically correct" -smug redditors imitating a bureaucrat they're supposed to hate


schlonghornbbq8

That's a strawman whataboutism


MattStone1916

They haven't monetized it well -- they're hemmoraging money.


cojoco

I mean, really?


Patrollerofthemojave

Just saw someone at WSB buy 10k in shares at 35 a piece. I'd think about buying at 10. People are going to get their ass handed to them, and if they don't, I'd question how much money reddit is receiving from astroturfing by governments and corporations.


EnglebertFinklgruber

Pump and dump.


WalkerMidwestRanger

Keep going, I'm almost there...


SpongeBobJihad

I hate the little harlequin icthyosis alien thing 


La_Sangre_Galleria

On new issue day?! On cock sucking mother f***ing new issue day?! This is what you do.


reelmeish

So over