8 mo. ago • 97%

Reddit power users balk at chance to participate in IPO as Wall Street debut nears

www.cnbc.com Reddit power users balk at chance to participate in IPO as Wall Street debut nears

Reddit is inviting some users to participate in its IPO this week, but moderators told CNBC that they're not taking the company up on its offer.

Technology @lemmy.world Reddit power users balk at chance to participate in IPO as Wall Street debut nears

Reddit @lemmy.ml Reddit power users balk at chance to participate in IPO as Wall Street debut nears

35 comments

I mean, yeah. Anyone who uses/used reddit a lot knows it's unprofitable and has been on a downward trend. The fabled IPO has been awaited for years and years.

98
- I think these days the average user is either entirely unaware or just doesn’t care about the financials of reddit. Power users, for sure. Not a small number but a minority in any case
  
  25
  
  I think these days the average user is a bot
  
  32
  
  Is average users offered or considering to participate in the IPO tho
  
  2
I got the invitation. I considered it. I decided not to participate. Reddit is too user hostile for me to consider that they have much room for growth, their valuation seems very optimistic, and the fact that they gave Piss Boy a $190 million dollars compensation package for last year is worrying to say the least. The whole IPO seems like a sell and bail strategy for the executive leadership.

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- 28
  
  Why are his eyes like that? That's some horror movie effects right there.
  
  5
- Felt the same way. A lot of articles mention that reddit always loses money (every year for 2 decades) and investors are no longer interested in growth potential, they want to see profit. I think this is probably true, and the show Silicon Valley is a humorous explanation of why it's true.
  
  12
I got the teaser IPO email, join the lottery BS and dutifully gave it all the concern and consideration that SPAM deserves

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In its filing, Reddit also names as competitors Wikipedia, Snap, X, Pinterest, Roblox, Discord and Amazon’s Twitch.

What the fuck?

Roblox?

Did they use ChatGPT to write their fucking filing? Jesus

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- Twitter is the only thing on that list even remotely close
  
  7
  
  I'd replace Wikipedia with Stack Overflow to make it more accurate, too.
  
  11
- Wikipedia
  
  You mean they see the non-profit organisation as a rival?
  
  4
  
  How can they possibly compete with a company that doesn't lose millions of dollars a year??
  
  3
- Roblox owns guided which is a discord like gaming voice chat service that also includes all those community features. Soo maybe that's the connection?
  
  1
  
  That makes more sense. Here I was thinking Roblox was still all in the videogame child labor market
  
  1
Good article. I think they hit on the real driving thought process behind the offer, and that's to divide any potential shorters on the opportunity to run the stock low.

For my part, good try Steve, but I'll pass on this 'opportunity'. The fediverse is my home now and I'll put in my efforts here.

37
- It speaks volumes for their understanding of their own userbase that they sent me an invite when my account has been inactive for months and is clearly owned by someone who doesn't live in the US.
  
  I don't think they are being genuine. I think this is a cash grab.
  
  7
If by participate you mean buy puts, I've been saving my pennies.

24
- This is the way.
  
  5
  
  I started looking into options recently because of the IPO tomorrow haha. I won't do it because it's too risky and I'm too new to investing but I think a lot of money could be made on puts. I bet RDDT drops 50% within 2 years, I also think the fediverse will pose a significant threat to their market share within 5 years.
  
  4
I passed on it. They sent reminder messages to both my email and reddit mail after the initial one. So, I suspected that the response may have been lackluster.

21
Who the fuck would want to buy Reddit now? It's absolute shit... 2010 Reddit would have been the Reddit I'd buy into

19
They sent me the IPO invite email a while back and I declined to participate. I've never given them a real name or real email (only a masked email). I'm sure they have a profile on everyone, and those are probably more accurate than any of us would like. But participating in it requires they know who you are for real.

I won't lie, part of me has a little bit of FOMO over it, and wonders if the meme stock madlads will do a big pump & dump on it. Which I will miss out on. But my brain tells me it's way too risky, and that the most likely scenario is the elite insiders (spez and pals) will get any rewards, and they will leave the invited reddit users as useful suckers holding the bag.

I mean, anything is possible when it's the lunacy of reddit and wallstreet combined. I mostly expect it to tank, but I wouldn't be completely shocked if it skyrockets out of irrational exuberance.

15
- nah no chance anyone will 'pump' this crap,
  i spent a bit of time on wsb reading what they think about it,
  all i hear is people wanting to buy puts on it.
  
  if anything its gonna go like the robinhood ipo where all the users that bought in before the ipo got shafted
  
  9
  
  I hope it spirals. I don't want to see little guy investors hurt. But I do want to see that douchebag spez fail.
  
  5
- I'm in the same boat as you. It's either going to be a total flop, or a pump and dump. Nothing else.
  
  3
Lol, "power users".

12
- "oh I'm special! I better buy!"
  
  6
Permanently Deleted

2
I bought 3 shares, I wonder how many others actually ended up doing so too.

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