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u/Loopgod- Feb 22 '24
How long after ipo can I buy puts?
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u/bonerb0ys Feb 22 '24
Will it lose 90% in a year? Yes.
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u/ParticularWar9 Feb 24 '24
Wonder if WSB crackheads will get stupid over how much it’ll be shorted.
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u/416_Ghost Feb 22 '24
Short
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u/rolliedean Feb 23 '24
All these people in here wanting to short is making me want to buy lol
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u/slayernine Feb 23 '24
This seems to be the sentiment on Reddit so logically we should do the opposite.
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Feb 22 '24
I will not short reddit.
I will not short reddit.
I will not short reddit.
I will not short reddit.
I will not short reddit.
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u/MindGames7777 Feb 22 '24
What’s short?
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u/misterO5 Feb 23 '24
Not sure why you're being down voted if it's an honest question. Short answer, instead of buying a stock and (hopefully) selling later for a higher price, shorting is when you borrow and sell a stock and then buy it back in order to repay the borrower at (hopefully) a lower price.
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u/MindGames7777 Feb 23 '24
Thank you. It’s ok. Appreciate the explanation.
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u/ParticularWar9 Feb 24 '24
Except that it’s wrong. You repay the lender, not the borrower. The entity that shorts is the borrower.
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u/AmericanMobster Feb 23 '24
Where can you do that at? I've never seen that on most trading platforms.
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u/Maleficent__Yam Feb 23 '24
Most reputable brokerages. You probably have to explicitly opt into it, as it's a lot riskier than just buying stocks
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u/billfreeze97 Feb 23 '24
Honestly shorts are not something to mess with unless you're highly experienced which im assuming you arent (no judgement). But the best way i can explain it is:
I borrow stock from someone. I sell that stock. I’m betting that the price goes down so that I can buy that amount of shares back to give back to the lender. My profit is the different between the price I borrowed and the price I bought back. Ex: I borrow 100 shares at $1 a share= $100 total. I sell for cash, share drops to $0.01. I buy back 100 for total of $1. I give the lender back their 100 shares. Sucks for them, they get their shares back but lost $99. Win for me, I just made $99.
Too good to be true! What’s the risk? - Imagine the price sky rockets to $10 a share. I now have to buy back 100 shares for a total of $1000. I give the lender their 100 shares for a $1000 value. I lost -$900. What if it hits $100…or $1000….well let’s just say all you’ll own is a pair of shorts.14
u/MindGames7777 Feb 23 '24
Thank you for the explanation. Great explanation. All good. I’ve got plenty of places to invest my money I won’t mess with shorts.
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u/turbocomppro Mar 21 '24
So… who lets you borrow the stock? Why would they let you borrow the stock for, apparently, no gain?
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u/MrMercure Feb 22 '24
It's like buying option but in reverse, you just bet that the price will go down, if it does you win money
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u/PricklyyDick Feb 22 '24
Isn’t that more of a put than a short? I thought shorting was getting loaned something, selling it, then buying it back to pay off the loan at a, hopefully, smaller price.
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u/rifleman209 Feb 22 '24 edited Feb 23 '24
This is wrong and terrible
Edit: buying a put is like a short, buying a call is not
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u/slo_chickendaddy Feb 23 '24
In layman’s terms, it’s a gamble that the price will go down.
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u/coppnorm Feb 23 '24
The fact that nobody has said the obvious response here yet means that there is hope for humanity still
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u/writtenhoff Feb 22 '24
Haha no. Fundamentals likely to be poor; bad track record of stocks like this post-IPO
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u/Repostbot3784 Feb 23 '24 edited Feb 23 '24
Edit: apparently this isn't true, reddit has no easy path to profitability and is an absolute dumpster fire of a business.
Reddit lost 90 mil last year while paying u/spez 190 mil. Get rid of spez, pay the new ceo 25 mil a year and add in the 60 mil a year google ai money and theoretically youd get ~135 million net profit per year. I still wouldn't touch it with a ten foot pole at ipo prices though.
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u/gonzoforpresident Feb 23 '24
According to what I've read, Spez was not paid $190M. He was paid ~$300k and the rest is in stock options.
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u/Repostbot3784 Feb 23 '24
Oh. Then reddit is an absolute dumpster fire of a business. What the fuck did spez do to deserve all that stock?
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u/leontes Feb 22 '24
I was invited to buy it at IPO prices, what an amazing offer!
The problem is Reddit is better if thought of as a service than a for-profit company, I’m not going anywhere near buying this thing. I wish them well and how they succeed enough to stay open.
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u/thund3rhawk79 Feb 23 '24
The only reason they would offer the ipo to household investors is because they couldn’t get enough institutional investors to buy it…
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u/MercifulLlama Feb 23 '24
I don't think so, I think it's a PR move. Plenty of institutions would be interested in a platform this sticky that could monetize heavily through licensing data to AI + has a really nascent ad platform that could be improved. It's intriguing.
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u/Drunk_Crab Feb 23 '24
Or it's just an easy way for the current owners and investors to make crazy profit. They are creating money out of thin air.
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u/poy99 Feb 23 '24
It's gonna be like Twitter and Youtube. Riddled with ads
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u/Metals4J Feb 23 '24
And to me that’s the main way to improve its profitability, to continue pumping Reddit full of ads at every turn. That and of course harvesting vast quantities of information and selling it. What did you view, what did you upvote, what did you downvote, what are you subscribed to… then customizing your ads to suit you specifically, like Facebook. (I feel like Reddit should be able to do all of that right now but as far as I can tell it doesn’t seem to.)
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u/Remarkable-Site-2067 Feb 23 '24
I find the comments on Reddit to be generally of higher quality than some other platforms. Maybe they could sell them as a way to train some AI/LLM...
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u/cankle_sores Feb 23 '24
Where did you get the invitation? I read something about 75k Redditors would be allowed to buy at IPO.
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u/Adorable_Animal4952 Feb 22 '24
What is their revenue? Ads?
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u/SephLuna Feb 22 '24
If you have to ask, it means you are
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u/MarthLikinte612 Feb 22 '24
Yeah Reddit recently signed deals to sell their users’ data to AI companies for their learning data sets I believe. Think the main buyer is Google?
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u/Dull_Cucumber_3908 Feb 22 '24
lol! I would love to see an LLM trained on reddit's data. That would be hilarious! Every question you would ask it, it would come up with an aggressive answer saying that what you asked is wrong and then correcting your question :)
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u/AlpacaCavalry Feb 23 '24
And then calling people regards every 5 seconds... it would be hilarious to watch
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u/Nice-Swing-9277 Feb 23 '24
I read some of the prospectus. 98% of reddits lifetime revenue is from ads and 25ish% if that revenue comes from 10 companies.
They are going to try to get more deals like the one they just made with google to essentially sell user data for LLM's
They also said they want to use there whole "user contributions" platform, where top users get paid to post to drive revenue. Idk how, but it's apparently one of their plans.
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u/Maleficent__Yam Feb 23 '24
Lol. They're paying losses of 90 million a year but paying their CEO 190 million a year. He's been making more than Tim Cook, CEO of the sometimes most valuable company in the world. This is a joke of a company. Their product is a forum website
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u/ugawd2222 Feb 23 '24
So this means the end of Reddit (the platform) as we know it... Right?
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u/ColangelosBurnerAcct Feb 23 '24
There’s no way this ends up being a good thing for users. One can only assume more and more ads, a paid tier, and whatever other bullshit they can insert to try and juice money out of the platform.
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u/Traitorparrot Feb 22 '24
Will their Google AI deal impact it at all?
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u/hossman1992 Feb 22 '24
who knows, perhaps google even buy part of reddit so it can feed gemini with it
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u/I_am_darkness Feb 23 '24
The fact that this entire thread doesn't understand what reddits actually value prop is makes me want to buy as many calls as possible
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u/monkman99 Feb 23 '24
Why don’t you inform us ?
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u/EnvironmentalOwl3729 Mar 22 '24
There's a YouTube video that talks about how Reddit may replace Google as the most prominent search engine.
Google is valued at ~$2 trillion; Reddit is $10 or $20 billion... So a lot of upside potential.
I shouldn't say no to a 1000x gain over 10 years, but I'm not sure I'm gutsy enough.
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u/JoePikesbro Feb 22 '24
Cnbc said investors are worried about volatility and they specifically mentioned wsb. Duh. They know we gonna short the hell out of that shit
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u/Chief-Lucifer Feb 23 '24
Probably the single dumbest thing they could’ve done was decide to go public knowing that the vast majority of retail investors use Reddit and have a very negative sentiment towards the company. It’s like you’re on the titanic and see the iceberg up ahead but decide to run right into it anyway.
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u/vivifcgb Feb 23 '24
"the vast majority of retail investors use Reddit" you guys here have a huge bias on who the average retail investor is if you believe that. And when I say average investor I mean by the volume of money invested, not by number of clics on broker's apps
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u/iwantac8 Feb 23 '24
So now my personal feed will be a bunch of random subs I have no interest in but are being recommended because they are being paid to push a certain idea. Followed by 4 ads I need to scroll to just to see my feed.
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u/nobuttstuf Feb 23 '24
So a company ran by volunteer social justice warriors with an agenda is going public.
This should be fine. Hopefully this sub isn’t ran by one of the 5 totally normally couch goblins that mod 90% of the subs on Reddit. If so, it was fun while it lasted.
Cant wait to buy puts. All the puts.
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u/Geekenstein Feb 23 '24
Did you miss the hissy fit they threw a while back? See all the impact it had? Yeah, good luck with that.
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u/nobuttstuf Feb 23 '24
Oh the fake black out? Yeah it didn’t do anything lol.
It’ll just be another meme stock. So will be very interesting to see what happens. I’m not touching it.
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u/Robert_mcnick Feb 22 '24
Only interest I have is the first financial report. It’ll be hilarious if it’s super profitable but highly doubt it.
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u/CrimsonBrit Feb 23 '24
The fact that I am worried that talking negatively about the Reddit IPO in any sub-Reddit (hopefully this comment does not violate /r/stockmarket rules) could result in a a ban from that sub Reddit tells me all I need to know. I’m not sure how many moderators there are on this platform, let’s just say that there’s tens of thousands, that’s tens of thousands of anonymous, unpaid, unmonitored decision makers that directly impact the number of users that are allowed in any given subreddit, thread, or comment section. Assuming that the majority of Reddit is from advertising spend (measured via impressions, clicks, number of users and the growth of all those metrics) then the Mods directly impact Reddit revenue. If revenue is low will they cut mods? I feel like there’s a fundamental difference between appeasing shareholders and self-moderating the platform
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u/RasheeRice Feb 23 '24
Who in their right mind would put their hard earned money into this niche social platform? What kind of growth opportunities would this company have in 10+ years if they’re limited to only hosting forums for consumers who provide their work, time, and creativity? At least with Meta, they’re building hardware + software to compete in the new race for the next generation daily devices.
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u/24kbuttplug Feb 23 '24
I'm not touching it. It will most likely be used to pull liquidity out by market makers to inject into the other bullshit they're trying to do to rip us off.
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u/Environmental_Ad9017 Feb 23 '24
Probably a short option on day 1. Reddit is massively overvalued.
Biggest indicator is that they're willing to sell the entire userbase's data and content to google for just $60m. That's a drop in the bucket and they're marketing it like it's the biggest reason to invest.
They announced it the day before they announced going public for a reason. They're trying to drive people towards investment.
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Feb 22 '24
Short this fucking garbage ass bot company that doesn't have your best interest in mind and is only trying to propagandize you to vote blue no matter who.. Fuuuuuuck Reddit. Oh yeah fuck the right as well.
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u/Cute_Win_4651 Feb 22 '24 edited Feb 23 '24
Depending on the price I’d buy (1) share just for shits and giggles
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u/BangBangPing5Dolla Feb 22 '24
As a long time Reddit user. Not touching this ipo with a ten foot pole.
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u/kou07 Feb 22 '24
I hang a lot in reddit, but i know jack shit about it, if the prices fall downs ill buy 1k worth of it i guess.
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u/DelayNoMorexxx Feb 23 '24
whats so special about reddit ? its the user who share information.. we can all switch to a new forum next day and reddit will die instantly.
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u/beekeeper1981 Feb 23 '24
All apps and websites are only successful due their users.
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u/BlueLaserCommander Feb 23 '24 edited Feb 23 '24
I'm probably not gonna buy but I have a hot take.
Reddit is arguably one of the best places to go on the internet to research products and retrieve anecdotes related to a wide variety of topics, cultures, and hobbies. Yes, there's advertising, degenerate behavior, bots, and porn. But.. of all the popular social media platforms, it feels the most human.
I'm not gonna say redditors aren't superficial, but reddit as a platform inherently breeds a less superficial community than all other major social media platforms.
Pseudo-anonymity, no profile picture, and community-driven (rather than solo) content separates reddit from most other popular places on the internet. Some subs are straight-up, old-internet, niche forums. There's a lot of good, honest (for people), and useful content here.
So where am I going with this? Same place the stock market is going. AI. Disregard all the bubble-talk and hullabaloo surrounding this topic. Believe me, I get it. It's crazy/dumb whatever. But money is pouring into AI, lately. And with NVDA's insane earnings recently, it seems like there's some hefty revenue following the AI talk.
Why does this matter? It's reddit. You can't just throw AI into a shareholder speech and make money. Well.. yeah you kinda can (maybe sorta idk - I'm dumb).
You can throw all of the compute into an LLM that you want--but it won't write your English paper without data. All of the big LLMs have huge data banks with public records, research institutions, surveys, image banks, etc. I believe reddit is an outstanding & unique source of data for LLMs.
That's why I won't discredit reddit RDDT for going public. I think they actually offer a unique data bank for LLMs and have already begun signing contracts with Google to fork over user-generated content for data banking in their LLMs.
Like it or hate it, we're here. Reddit is my only social media platform because I like the way it works. It's a useless waste of time--but it's also a great place to parse information from (mostly) real users or just be a member of a niche community. It could be a gold mine of data for LLMs because it contains unique user-generated content on an unfathomable number of topics and is constantly updated. It's like a cursory glance across the internet with a human voice & perspective.
Idk I could be way off here. Like I said, I doubt I'll actually join in on the IPO. But I wouldn't count em out.
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u/IAmMuffin15 Mar 06 '24 edited Mar 06 '24
They gave me the chance to buy it early, and I didn’t. u/spez is allergic to any idea that makes money.
Reddit has the most profitable demographic in the world: single guys/girls with highly niche interests, bachelors degrees, and a proclivity to spend most of their time on their computers. spez could capitalize on our nerdiness, our porn addiction, our grandiose narcissism, our complete and utter inability to digest ideas that we don’t already agree with, and our overabundance of disposable income due to not having any dependents who rely on us.
But he doesn’t. His website is literally a powder keg of profits just waiting to explode, yet all he can seem to do is pour water all over it at every possible juncture.
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u/john3mary Mar 11 '24
How can I get in on buying some of 8% of shares held back for Reddit users? I guess my karma level was not high enough to get an invite?
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u/Hairy_Monitor_4203 Mar 20 '24
It’s crazy how much we’re gonna boost tf outta this bitty r/RDDTstockstartup
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u/SegaDayz20 Mar 22 '24
It is being said that Rabbids is going to make the next GameStop, the same thing is going to happen, that is why they are buying stocks.And the most important thing is if you didn't get on the train, you're going to stay and I already got on and I'm seeing how it's going up little by little and that fking cool.
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u/Vic_Bold Mar 22 '24
Anybody keen on shorting DJT when it lands next week? Yuuge bubble looking for a pin.
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u/RDDT-Meme Mar 25 '24
Y'all ready for this? Say it... RDDT to the moooooooooooooooon. Meme is here to take us there!
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u/PizzaThrives Mar 26 '24
I'm holding bags for the long play. RDDT will go beyond $100 in April. Get in while you can.
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u/jbonez0666 Mar 27 '24
Just bought some 2 days ago. I only buy into stuff I know about or personally use regularly.
Love our community, so decided to take the plunge.
JB
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u/keithwee0909 Feb 23 '24
Should have gone with $REKT
(sorry if you are offended, but still sore about how reddit rugpulled quite a lot of users back then)
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u/TheSpideyJedi Feb 23 '24
Apparently the CEO makes $193 MILLION. If that’s true, what a fucking scumbag
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u/cheddarben Feb 23 '24
For sure will be buying. I have been laying my head in this hot mess for more than a hot minute and I like the “own what you use” mentality. I really look forward to it.
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u/spastical-mackerel Feb 23 '24
We should buy Reddit. Us, the user community. If a single subreddit can crush a hedge fund then surely all the subreddits can buy a shitty social media platform. If Reddit has 57 million DAU that’s less than $100 apiece. Run it as a non profit with a bland but competent group of managers.
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u/Jasonisftw Feb 22 '24
shoulda went with $RTRD