I'm a mod in a sub with enough activity to qualify for investing in the IPO. No idea of the terms, if there is a min or max investment, just got the eligibility email this week. What do you think will happen when they IPO? Other companies that weren't profitable didn't do too well. Would you invest if you had the opportunity?
They're looking for bag holders and I honestly can't think of a better candidate than a Reddit mod.
Wow such a smart, considerate, and not-edgy-at-all take! Good job Mr stripe
This take is closest to my own view. I don't see institutional investors jumping at the opportunity.
It will shoot up when it first IPO: it has been a long time since there was a decent tech IPO, so pent-up demand is high. WSB talks shit a lot about shorting, but where are they going to borrow shares to short? Realistically, they will buy puts, but those who sell them puts will need to buy shares to hedge, likely pushing the price higher. Existing shareholders like spez can't sell in the first 6 months, so again, no downward pressure. In the long term, it's hard to tell. Ads are in a place of the rich (Google, FB) get richer, while the poor (Pinterest, Snap, Twitter, etc) get fucked. Reddit is solidly in the latter case, so they have a lot of pressure. That said, they have unique content and engagement, so who knows.
> Realistically, they will buy puts, but those who sell them puts will need to buy shares to hedge What? None of this is true
๐๐ what are you talking about. Of course options market makers need to hedge. The comment is wrong directionally though, as market makers who are short puts will need to sell shares to hedge
Are they profitable yet?
I'm inclined to believe the most recent Bloomberg coverage that says no.
I think Reddit's best path forward is to license or sell all of their content to the likes of OpenAI or Google for training LLMs. Not sure how much money there is to be made, but after Wikipedia, Reddit is the next biggest source of training data.
Yes, it's definitely a good opportunity. However, there aren't too many companies in the market to purchase. There will likely be a huge up front deal, like there just was with Google. However, there will be limited value beyond the first training set. The ongoing updates aren't going to be as valuable for LLM training. Maybe more smaller companies would make use of specific subs for fine tuned models?
Reddit is full of porn, illegal activities, and a lot of controversial topics. The IPO will flop big time.
Shorting as soon as possible