Social media company Reddit filed its IPO prospectus with the Securities and Exchange Commission on Thursday after a yearslong run-up. The company plans to trade on the New York Stock Exchange under the ticker symbol “RDDT.”
Reddit said it had $804 million in annual sales for 2023, up 20% from the $666.7 million it brought in the previous year, according to the filing.
The company said it has incurred net losses since its inception. It reported a net loss of $90.8 million for the year ended Dec. 31, 2023, compared to a net loss of $158.6 million the year prior.
Its market debut, expected in March, will mark the first major tech initial public offering of the year. It’s the first social media IPO since Pinterest went public in 2019.
Reddit first filed a confidential draft of its public offering prospectus with the Securities and Exchange Commission in December 2021.
I will short the ever-loving shit out of that stock. This is a no brainer.
It’s a TERRIBLE investment. The business model is completely flawed and dependent upon assumptions that there will be only positive growth in the user base.
Google is going to use Reddit to train its AI. That software is going to immediately become a smug, whiny, racist, pedophile femboy.
I look forward to capitalizing on this completely predictable sunbaked diaper.
Except the stock market (and all the cultists who worship it) don’t inhabit the same reality as the rest of us.
It doesn’t matter if Reddit is a good investment or not- what matters is if Reddit feels like a good investment to those assholes. The market can remain irrational a lot longer than you can remain solvent.
I’ve never shorted stock before, but I’m really tempted to start now. RDDT will become the inverse meme stock.
read up carefully. It is a strategy that can lose you more than you put in.
Better than a true “short” is to buy a put option on the stock for 100 shares. You buy a contract that lets you buy someone else shares at a lower price. If youre sure the stock is going to decrease, you pay a minor amount to make more money when it does.
You can then opt to exercise this and get cheap shares, or more likely, sell the put contract directly for profit.
You can also sell a call option that says you will provide 100 shares at a higher price. If you think the stock is going down, you will never have to actually fulfill this, so the money you made from selling the call is pure profit.
The positive with options is that they limit your losses if youre wrong, unlike shorting where technically your losses can be unlimited. Options are also easier to get into than shorts, which generally require specific brokers that have minimum account size.
The negative is that options are time limited. They last only a certain amount of time you specify when you buy. You can be 100% right about how the market will move, but if you get the timing wrong, you still lose money
Shorting an IPO isn’t really available to most investors. Liquidity is super low and most brokerages won’t be able to offer it for a while.
I’ll just stay poor rather than risk becoming part of the investor class.
I’m serious.
On top of what others have said keep in mind shorting isn’t just you saying the stock will go down, it’s you saying the stock will go down more than others think it will. Tbh I wouldn’t even touch anything to do with shorting or options if I were you. It’s incredibly risky and should only be done by people with more experience than you and I.
Absolutely correct. I played around with options several times during the height of the pandemic and lost over 99% of my investment. I think it was about 99.3%. It’s straight up gambling.
Shorting a stock can result in you owing more than you’ve already spent. That’s back alley gambling.
Keep in mind there are literally thousands of Redditors who have the same idea.
pedophile femboy
you don’t need to continue this bigoted line against queer people, intentional or not.
Are you actually serious?
If you read the whole thing, it’s clearly supposed to be a mashup of different aspects of reddit.
I’m the original commenter.
While you found my intention to be pretty clear, I can also understand the responder’s concern.
I’ve never had to live my life being called a pedo because of my sexual or gender identity. It must be exhausting to have to constantly defend yourself against those awful accusations.
I can empathize with someone seeing those two words together and getting upset.
The big question, of course, is what can we do to help make sure it tanks?
I don’t think we have to make sure.
Spez doesn’t care. He’s made his money. Reddit can just die as far as he is concerned.
And neither he nor anyone else there seems to be interested in improving the user experience.
Make sure what tanks? The IPO for reddit? The website whose CEO was a moderator on r/jailbait, the community for sexualizing minors?
The website whose CEO was a moderator on r/jailbait, the community for sexualizing minors?
I thoroughly dislike spez, and I think there are a lot of reasons to be critical of him, but this isn’t one of them. He was made a moderator of /r/jailbait at a time when people could be added as moderators without being notified or needing to accept any kind of invitation.
I’d rather see him criticised for the many awful things he’s said and done over the years than for some non-reason like that.
If you think it’ll tank, you’re just as deluded as the people that came here in the Exodus (myself included) who think Reddit is dying.
The vast majority of people still use it and it will make money.
Edit: Just look at how pretty much all the largest corporations can treat their customers and still make money. Reddit will force ads down everyone’s throats and sure some will leave, but the vast majority done care. Also, you have to factor in selling data for AI and and targeted ads etc.
Reddit has never been profitable and I don’t see a reason why it would change now all of a sudden.
Only time will tell.
Don’t get it twisted I ain’t out here shilling for Reddit, just trying to take an objective look.
As sad as it is I think you’re right. The same was said about facebook and even though they had a bumpy road it’s bigger than ever before. Nothing being sold at the stock market follows any logical rules, it’s so much emotion that sells stuff. And as long as it makes money, nobody cares about racism or pedophilia or any other bad thing. I thought that’s why we hate capitalism that much.
Facebook went public at a time when they were THE social media site and everyone’s aunty was on it.
I’ve been on reddit for probably 12 years and know few people irl that use it (not usa mind you). Moreover they don’t really have a plan and they do have competition. Ignoring for a second that 99% of lemmy users are probably disgruntled ex redditors. Why should anyone invest som ofnl their savings in reddit going public, besides playing wall Street bets? Is there anything there to believe in? Do they have a credible plan to increase users and monetise that increase? In other words, any “step 3: profit” to buy into?
Interesting. Today Reddit sent a new TOS letter to an old email address (I don’t have any Reddit accounts because fuck u/spez). The username it referenced was created today. I’ve never used this address with Reddit and don’t have any confirmation emails in my box or spam indicating someone else tried to create this account. I changed the password and deleted the account, but I have to wonder if they might be trying to boost their subscriber numbers for an IPO.
Yeah, I just had an email inviting me to participate in the IPO. I’m not a US resident though so that won’t be happening.
Welp. That’ll be the final nail in the enshittification coffin.
Good for them. They can get fucked.
