This is one of the more scathing pieces to come out on Ars about Reddit. As the site did not respond to inquiries, all that was available to report on was profoundly negative statements that Advance is unlikely to enjoy seeing.
Gross, no thanks. The whole point of the IPO is so Huffman and all the other schmucks there with piles of equity can finally get their big pay day. Fuck the lot of them.
Yeah the fact they’re deliberately targeting individual investors instead of institutional investors kind of underscores that this is a cashout.
If there’s one thing that says “hot IPO,” it’s delaying 3 years and then sending invites to 75,000 random members of the general public inviting them to buy at pre-IPO prices.
I KNOW the stock is gonna take off like a rocket, but I just want cumguzzler1057 to be holding it instead, I have enough money already. He should share in the gain.
The Journal reported that 75,000 of the “most prolific” Redditors will have an opportunity to buy “an as-yet-undetermined number of shares” before trading starts.
Emphasis own. So, basically, they’re fishing for buy-in from people still addicted to Reddit. I wouldn’t be surprised if the offered price is actually really bad.
They saw the wsb ape mentality and hope to leverage it.
Go ahead and buy. Shares generally tank pretty quick after IPO for companies that don’t actually make anything, the dot bust ensured that. Only time will tell if Reddit shares improve or flounder around not going anywhere. An additional thought - Reddit would do well to do things like get rid of old.reddit, go after ad blockers, and maybe implement a “verified” fee program like Xwitter to boost their stock potential. And also ensure I’ll never return.
