"Earlier this week, Reddit disclosed in a corporate filing that CEO Steve Hoffman sold 500,000 shares, and Reddit COO Jennifer Wong also disclosed that she sold 514,000 shares."
If they believed in the platform, they would hold. Yeah looks like they are looking for bag holders.
I think it matters more what percent of their holdings they sell rather than the amount they sell.
The COO holds 1.4 million now, so she dumped 25% of her shares
To be fair (and you can probably see by my username I don’t like reddit anymore), I think it makes perfect sense to dispose of a fair portion of your shares in this situation. Firstly, these asshats get paid part of their salary in shares, it’s natural to want to get more security on part of your income. Secondly, with how hard the price rose in the first couple of days, it makes sense. But people are welcome to disagree, of course.
How does that respond to the original idea, that is:
if they believed in the company, they would hold their stock.
You are not a genius for selling your company's stock after IPO, you are a grifter. Doesn't matter how many voting shares they have, doesn't matter how much more money they need - they do get paid in cash too, and they can borrow against the stock.
So they sold out. Fuck them both for that.
if they believed in the company, they would hold their stock.
The COO holds 1.4 million now, so she dumped 25% of her shares
Selling quarter of your stock AT THE FUCKING IPO is a shame. I can't believe people are defending that.
And I suspect they can't sell the rest as easily as the A shares.
I don't know how much of a bag holding exercise it is instead of a "treat yoself" moment. Half a million shares at $50/share is $25 mil, minus 50% taxes is $12.5 mil.
That isn't that much money in the bay area. Don't get me wrong. It's a lot. But that's just a $4 million house with another $1 million in furnishings, and I'm guessing a nice car or two. Take the other $6 mil and invest in a diverse portfolio. They've basically sold their stock so they can square away their personal lives.
Won't somebody think of the poor shareholders.
When I treat myself, it's to a takeaway meal that's like $20. Reddit has "never made a profit"™. Siphoning $16mil out of it on day one is obscene.
We all knew this was a pump and dump scheme. Spez got his, fuck everyone else.
did he really though? because I'd read a big chunk of that massive 100+ million dollar compensation was shares vested after IPO based on performance.
hopefully it ruins them all.
He sold 500 000 shares for a big fat paycheck. It's not 100 millions of fictional dollars, but he still made out like a bandit.
Whomp whomp
Reddit has a market cap of $7.8 Billion right now.
Truth Social had a market cap of $8.4 Billion.
It's all just rigged gambling. That money won't benefit the company at all. The investors just sold all their stocks to the hedge funds and retirement funds for them to lose money on, like always. The IPO was just a way to pay off investors and let executives cash in their stocks. I'd love to know what restrictions on selling came with the stocks that were given to regular employees and users/mods. Like are they allowed to sell right away or do they have to hold it for some period of time?
The stock market has a lot of magical thinking behind it. That's why there are constant frauds.
Why were insiders allowed to sell so quickly?
There's a lot of confused people in these threads. Steve Huffman sold 500,000 shares as part of the ipo, so they were some of the shares sold immediately before they opened on the market (at the about $30/share price). He still holds 4.1 million shares. Other insiders sold some shares as well. Some shares were created to raise money for the company. Once the ipo actually happens and the price for all those shares is negotiated with the bank assisting and all initial buyers, then it begins trading on the open market. At that point they are in a lockup period, and they can't sell anything for about 180 days. All of this is in sec filings, where you can see the source of all the shares that were part ot the ipo.
Look I hate Steve Huffman too, I'm here on lemmy after all. But this is a grossly over valued tech stock and there hasn't been many tech ipos in a while. It's very not surprising it would start sinking after an initial explosion of buying activity. It's not dropping from insiders unloading stock right now though. They're in lockup.
Steve Huffman sold 500,000 shares as part of the ipo, so they were some of the shares sold immediately before they opened on the market (at the about $30/share price).
I suspected as much. I got the invite too, and thought about putting some money in. But I didn't want to risk the chance of being King Steven's exit liquidity, even if I could make some money on it, so I passed.
I wouldn't have wanted to buy anything either. It's actually slightly more progressive than most ipo's in that sense though since it offered a chance to buy shares directly, but that's not really saying much. A true public offering would allow anyone to place orders as a part of the initial sale. Usually just large financial institutions have the chance and then the price is very inflated by the time most retail traders would be allowed to buy. If we really want to help the rampant wealth inequality in the economy too, there should me some mandated equity that goes to employees whose labor built the company so everyone, and not just the board and a few venture capitalists, can profit from the stock sales. Which I guess is a roundabout way of saying workers should own the means of production. It doesn't make sense to reward only so few for the work and ideas of so many individuals. And I think it's a huge inefficiency in the economy that is detrimental no matter your view point (unless you're a billionaire company founder who doesn't care about the country, economy, or world as a whole I guess).
Oh noooo, who would have guessed the initial week would have been pumped to grift more value out of it and then immediately hard dumped
"Earlier this week, Reddit disclosed in a corporate filing that CEO Steve Hoffman sold 500,000 shares, and Reddit COO Jennifer Wong also disclosed that she sold 514,000 shares."
Third bullet point. Nuff said.
That is definitely part of it, but r/Wallstreetbets is also shorting the fuck out of the stock.
One of multiple threads- https://www.reddit.com/r/wallstreetbets/comments/1bcfl86/reasons_to_short_the_reddit_ipo_make_big/
This is generally how IPOs work out. Same happened with ARM.
Yup. Nothing surprising.
thoughts and prayers; go bears.
Hope it keeps plummeting.
I really think most investors really are disconnected from the reality of the companies they are investing in despite there being communities online where you can get the low down. Someone got rich, but it will not be the investors. Suckers.
This was totally expected. Story of most tech IPO’s. It’ll continue to fall into the teens, maybe single digits and stay there for a long time.
Yep, Facebook dropped 50% after the IPO. If you bought at IPO and held on to the stock you now got 10x ROI. Of course FB makes a ridiculous amount of money from ads even at the IPO while Reddit is still struggling.
That spezial mod of r/jailbait already cashed out his shares for something like 16 million so he got his... I doubt he cares what happens now.
I so rarely get to do my c/news duty outside of that community, and you're welcome.
Stock Market Capitalism is just imaginary numbers made up by rich people to convince other rich people to give them money. It's completely ephemeral.
The fact that it can rise or fall with nothing more than a silly antic from one person is proof about how insubstantial and frankly ridiculous the whole scheme is.
Hold on guys. I want to sell you all together for a lot of money. I mean not you personally just everything you write. No worries 😁.
Called it. Overvalued. The site has been is in dire need of investments to improve the platform. Give tools for the moderators to do their job properly (they're already working for free), improve the page layout, fight bots in a more intelligent manner, find innovative ways to make the platform turn a profit instead of resorting to the most assholeish, intrusive and abusive ways ever. But instead the dipshit that runs that dumpster fire gave himself a huge undeserved paycheck with the money that should have been used to do that so when it inevitably comes crashing down he has made some reserves.
I wouldn't be surprised if most of the traffic on that site is bots farming karma so they can spam some ads at that point and a significant portion of human accounts they have left are probably shadow banned by false bot detection. Every attempt they've made to make money out of the platform was so terribly thought through that it just unnecessarily resulted in a far worse experience for the userbase than it needed to, screwed over the people who work for free to keep running and was met with huge backlash every time. And they still can't turn a profit.
Bull trap. Which will follow with a bear trap. Then after two bounces it'll crash like Robinhood.
I'll stick to VTI and VXUS.
This reminds me of the things preceding the 1929 stock market crash. I'm not a history expert and know very little about it, but I recall that just before it happened, many people who ordinarily did not care about the stock market or had to means to care about suddenly started speculating in the market. That may not have lead to the crash but possibly it was a symptom of whatever has fuckening. I think just looking at us all here talking about how reddit this and that blah blah, that's a symptom of the impending market crash of the early 20's. LOL it would be hilarious if it happened exactly in 2029.
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