An IPO is an initial public offering. It is when shares of the company are being sold for the first time. This allows a company to (potentially) raise an enormous amount of money to expand their business.
When people buy and sell stocks or you see stock prices being reported on this is more or less a secondary market, people or investment firms trading stocks amongst themselves. The company doesn't get any money when a stock trades hands in this fashion.
An IPO is different. The company is selling little pieces of ownership and the money from those sales go into their coffers. To raise the most funds the company wants to convince potential buyers that the company is valuable and is now or will soon be profitable (and will pay a dividend out for each share owned). This assessment of value (called valuation) is often complex and can take a long, long time.
Reddit's recent effective shutdown of third party apps to force mobile users onto the Reddit mobile app was almost certainly an effort to get a better valuation. It shows potential buyers of shares that the content on Reddit can only be accessed on mobile devices via an app that the company would get the ad revenue from.
All the kerfuffle and shakeups at Reddit have been leading up to the big day, the IPO. The big news scoop is that that date has been set for March.
Founded in 2005 by web developer Steve Huffman and entrepreneur Alexis Ohanian, Reddit became best known for its niche discussion groups and its users voting "up" or "down" on the content posted by other members.
Disgraceful, disgusting, lying scum. Say his name: Aaron Swartz
Aaron Swartz actually didn’t found Reddit. He built a similar company that wasn’t gaining traction, and as both of them were under y-comb and Reddit secretly seeded fake accounts, Swartz and y-comb decided to merge into Reddit. Swartz was sort of their first and hardworking employee instead of a co-founder.
Contrary to many in here, I don't think this will cause another exodus from reddit. those who might be concerned by this have already left or reduced their time on the platform
I don't know where you are getting your numbers. maybe it's your selection bias, but facebook's userbase keeps groing, and even if its getting less teenager engagement, those teenagers are flocking to Meta's other platform Instagram.
Do we really though? Don't get me wrong it's some of the most entertaining content I've seen on the Internet but I think it brings more harm than good on the whole, especially with the fervor around GME that spun off into being downright delusional. I'd prefer if we don't end up bringing that over here tbh.
I think the 'old' wsb even would be sort of borderline with the egging on and memefication of gambling one's life savings on weeklies
I think what may buoy them is the fact that you must append “Reddit” to searches, however, ChatGPT, DuckDuckGo, and Kagi are giving them a run for their money
Not financial advice, but there's been a few times I wanted to short something (I didn't in the end) but one thing to watch out for after an IPO is the date insiders are allowed to start selling stock. It's often 6 months or so after the IPO and can cause share price to drop.
So if a company jumps in value post IPO, there might be an opportunity to short it at some point, with the options expiring a period of time after the insider sell off date.
I imagine I'm going to do some paper trades on reddit on this and see what happens. I'm rooting for them to do poorly. Fuck u/Spez
Edit: And to clarify, I mean buy puts on something. I'd never short something directly.
I'm using it right now, it's so much more usable than Lemmy. But that's whats great about opensource. You can come up with your own changes or a big group can polish an ugly turd into something awesome.
I do wish they tried to push people to smaller servers instead of cramming everyone in the same top 3. Send people to the server which matches their interests
My shortcut is still called wefwef but I know what I’m using haha, I’m just lazy.
I love the app and you made my transition from Apollo so easy. I would probably be wandering around in the dark with no content if you hadn’t pulled this off. So again, thank you.
He can buy in but he can't buy all of Reddit. According to the article the IPO will only be for 10% of the company. If he goes in, that's only going to drive up the price.
It will launch, spike up a little that day, then drop pretty hard for a month or so, getting down to about 60% of its launch price, before slowly gaining back up to around 80% of its launch price after several months.
Also, my prediction is that big puts will be selling for way higher than their likelihood, because so many retail investors want to to fail. So even though the stock will go down, tons of people will lose money betting that.