Reddit To Offer Shares In IPO To 75,000 of Its Most Active Users - Slashdot

Reddit To Offer Shares In IPO To 75,000 of Its Most Active Users

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• by alvinrod ( 889928 ) on Wednesday February 21, 2024 @05:56PM (#64258292)

  I have a much more pessimistic view of this. I think that interest from investors is lackluster or the market doesn't think the shares will hold their value after the IPO. This seems like a good way to find some people with less savvy who collectively could purchase enough shares to let their current owners get their payday before the stock tanks in the following months. Users could buy stock on their own anyway, but most wouldn't think to so. Tell a few people about a special offer reserved just for them because they're special and suddenly there's a lot more interest. Create enough envy and later the program can be expanded so even more suck^H^H^H^Husers will want to buy shares and it doesn't matter if there isn't as much investor demand.

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    Unfortunately, you're probably right, this isn't altruism but is just plain ol capitalism. This is a PR coup designed to deliver a return on the investment. Offer 75k people the equivalent of maybe, 10k in stock, and for 750k you can possibly get the successor to Roaring Kitty to pump your STONK to the MOON!
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  • No way this has any impact

    This seems like a good way to find some people with less savvy who collectively could purchase enough shares to let their current owners get their payday

    That's quite a take but no way are 75k Redditors going to be buying even 1/10 what a single hedge fund will buy.

    Literally no-one cares about this offering outside of Reddit, nor will it move the stock price one iota (for good or bad).

    It's purely a gift.

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  Really? You're so happy and proud that you're *checks notes* allowed to buy shares?

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    The key is getting to buy at the IPO price, not the market price. That is usually a license to print money - except of course when it isn't, i.e. the IPO price was set too high.

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      It really isn't. IPOs are just a pure gamble as to whether you think the share price is too low or high for the given value of a company. The only thing that sets it apart from any other share purchase is that you expect a day 1 correction. They do drop just as much as they go up, and in the 150 IPOs last year about half of them would have netted you a loss the day after.

      It's a pure gamble as to whether you think a market analyst has valued something too low or too high. If you want that you can get the sam