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Reddit files to list IPO on NYSE under the ticker RDDT (www.cnbc.com)

submitted 4 months ago by [email protected] to c/[email protected]

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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.

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[-] [email protected] 99 points 4 months ago

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.

[-] [email protected] 51 points 4 months ago

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.

[-] [email protected] 43 points 4 months ago

It’s a TERRIBLE investment.

"We are not profitable"

-Spez, certified jailbait aficionado

[-] [email protected] 28 points 4 months ago

[-] [email protected] 21 points 4 months ago

I've never shorted stock before, but I'm really tempted to start now. RDDT will become the inverse meme stock.

[-] [email protected] 40 points 4 months ago

read up carefully. It is a strategy that can lose you more than you put in.

[-] [email protected] 11 points 4 months ago* (last edited 4 months ago)

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

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[-] [email protected] 17 points 4 months ago

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.

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[-] [email protected] 12 points 4 months ago

I also should learn how to short a stock.

[-] [email protected] 6 points 4 months ago

I'll just stay poor rather than risk becoming part of the investor class.

I'm serious.

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[-] [email protected] 8 points 4 months ago

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.

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[-] [email protected] 9 points 4 months ago

PUTS on RDDT! LFG!

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[-] [email protected] 50 points 4 months ago

The big question, of course, is what can we do to help make sure it tanks?

[-] [email protected] 54 points 4 months ago

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.

[-] [email protected] 35 points 4 months ago

Yeah this is the rugpull.

[-] [email protected] 19 points 4 months ago

Make sure what tanks? The IPO for reddit? The website whose CEO was a moderator on r/jailbait, the community for sexualizing minors?

[-] [email protected] 15 points 4 months ago

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.

[-] [email protected] 13 points 4 months ago

Cool, now explain away his decision to make a custom award specifically for the main mod of jailbait.

Also, fuck no I'm not giving him the benefit of the doubt over his own jailbait moderator status. No way he and the rest of the staff were not aware of that at any time.

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[-] [email protected] 13 points 4 months ago

I'm pretty sure they won't need any help with that.

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[-] [email protected] 31 points 4 months ago

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.

[-] [email protected] 9 points 4 months ago

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.

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[-] [email protected] 19 points 4 months ago

Welp. That'll be the final nail in the enshittification coffin.

[-] [email protected] 13 points 4 months ago

Good for them. They can get fucked.

[-] [email protected] 13 points 4 months ago

Don’t you usually get to black before the IPO? We’re not really in growth stock rates these days.

[-] [email protected] 9 points 4 months ago

There was another article today about them getting a contract from Google to train their AI on their content for millions a month. This should close the gap and lead to a possibly positive year for the first time ever this year.

They saw a 20% increase in revenue, likely due to consolidating people on their app, getting them the ad revenue boost. That impact is only a little over 6 months old. I'm curious what a year looks like.

[-] [email protected] 9 points 4 months ago

The article I read said that Google will be paying 60 million dollars per year, so that still leaves them 30 million in the red considering the 90 million net loss of 2023.

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[-] [email protected] 4 points 4 months ago

The vast majority of companies arent profitable with their IPO. This is a relatively recent phenomenon.
The total IPO/year has tanked too.
All I'm getting at is that overall trends no longer apply as business and how stocks are approached has changed a lot

[-] [email protected] 10 points 4 months ago

I got the “do you want to hold the bag” email.

[-] [email protected] 10 points 4 months ago

The last DDT went pretty well right?

[-] [email protected] 7 points 4 months ago

Are you referring to the chemical or the wrestling move?

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[-] [email protected] 9 points 4 months ago

I will laugh like a hyena if they Facebook their IPO.

[-] [email protected] 8 points 4 months ago

Interesting that they're offering to let me buy shares at the IPO price...

[-] [email protected] 14 points 4 months ago

Spez is straight up luring the userbase into a rug pull scam.

Plenty of rubes will fall for it and the stock will be overvalued for a short period of time, then the institutional investors will pull out, then the rubes will panic sell, then institutional investors will slowly buy back in a little bit and it'll eventually reach some kind of baseline but never get back to where the redditors bought in at.

I just hope I can get some good puts in before the rug pull happens.

[-] [email protected] 7 points 4 months ago

“You have to be in our exclusive club to buy our stock at the same IPO price you can get through Robinhood.”

[-] [email protected] 4 points 4 months ago

IIRC Vonage tried that too, because the folks in charge knew the IPO was going to fail spectacularly and wanted more rubes to put in some money.

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this post was submitted on 22 Feb 2024

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