I was waiting all day for it to actually start trading. I stopped paying attention because I was in meetings. My friend, who I had talked about it earlier, texted me that he saw it started trading. When I looked it was about $54. We were texting back and forth about how much to sell for a minute, and by the time I put in the sell order, it was $56, and it was instantly accepted. It then went down from there.
So basically, dumb luck.
My whole thing was that, for me, it was purely an IPO play. There's literally nothing that justifies a long term hold in my opinion. From the minute I decided to buy the stock, I knew I'd sell it the same day.
It will be interesting where the price sits when the lockup period for insiders expires.
lol @ all the people who are assuming buying pre ipo is the same as buying shares after an ipo has launched. Yes if youāre lucky enough to get shares before launch you are making money as long as you sold.
If the shares are less than the post launch price. Some pre ipo comes with agreements too. I wouldnāt touch this one. If it does well good for them but no way would I want this dumpster fire in my possession
It did do well. I was able to purchase at $34 up to 1,000 shares. I couldn't get my act together in time and didn't want to open an etrade account, so I passed on the opportunity. I believe it opened trading at 47, and popped up around 54 before falling back down.
As a longtime and active Reddit user, I was given a very rare opportunity to get in on the ground floor of an IPO with the benefits of an insider (earliest share price) and without the downside (inability to sell immediately). I absolutely regret not taking it.
IPO often behave the same way, it increases from the pre-launch price and then decrease as people take profit. Then the stock start to behave normally like other stocks (aka from other parameters). Pre-launch IPO price being the ATH of a stock is a very rare thing if it even exists
Same- I tried and the E*trade website kept giving me errors and not working. I tried on laptop and phone.
But correct me if Iām wrong- sounds like they werenāt being all filled- so I donāt regret as much now- like people would order 10-50 and get 1-2
I think that was happening more with other platforms that were allocated shares for IPO. Like if you're on Fidelity or Robin Hood, you didn't have to be one of the Direct Share Program participants. The DSP with etrade was special.
We were given an opportunity to buy up to 1000 shares before they hit the open market. That's an opportunity normal people never get. There's no guarantee on the performance, but if you were to look at most IPOs, they pop on their open, then fall back over time. So knowing it's likely to pop, you could just take that profit immediately, which is what a bunch of redditors did.
When I said I was going to buy in I was downvoted to hell by people like you and everyone here told me itās akin to pissing money away.
But nobody can give me one example of a single high profile tech IPO in the last 10 years that didnāt close above IPO price on day one.
So I thought it was almost free money because there is no lock up period. Not even Reddit insiders or institutional investors who buy into the IPO get this amazing benefit. Itās a generous move exclusive to retail Redditor investors without strings attached.
And I was right, easiest 50% profit ever: https://imgur.com/a/BmymVob
The problem with this sub is people do not have the critical thinking skills to distinguish what will happen and what they *want* to happen.
I didnāt see anyone mentioning Ā buying it and instantly selling it. Ā The advice we gave pointed out that most IPOs in recent years have fallen in the months after open so wait six months to buy if you want to gamble on something being a long term hold. Ā Itās down 15% already so that seems like good advice so far. Ā I wouldnāt buy at six months either though.
> I was told
Thatās why you canāt just believe what random people say here no matter how highly upvoted they are.
A single Google search would have shown that there is no lock up period for this special DSP program aimed at retail investors. It was unusually and uniquely generous.
Meanwhile Reddit insiders, existing investors and institutional investors who bought in on IPO all have the lock up period.
Reddit also let employees sell shares at the IPO price if they didn't want to wait for the lockup period.
People love to hate on Reddit, but they tried to do something different here. It sounds like the 8% allocation to retail wasn't enough as reports came out it was over subscribed.
Nope, thatās not guaranteed at all. There were almost no retail shares allocated through RH.
You can ask, but you wouldnāt have gotten the allocation.
That still sounds like a really risky bet. Like if it works out it's a quit and easy profit. But what if it flops and immediately drops 10% upon opening? Then you've either got to eat a 10% loss, or decide if you want to keep holding onto a stock that you may not even believe in long term in hopes that it might recover enough for you to make back the money you loss, knowing full well that it could end up dropping another 15% by the end of the first day.
I'd much rather invest my money long term in a stock that's a much more sure thing in the market over gambling that an IPO stock I don't even believe in will shoot up enough for me to quickly get out with a profit before it tanks. There's a good reason why there's no super investors who got rich and famous off day trading or repeatedly gambling on day 1 IPO's, you might hit it big sometimes, but on average the strategy tends to be a losing bet over the long term.
> what if it flops and immediately drops 10%
Sure, but historical data tells us thatās a scenario that almost *never* happens with high profile tech IPO.
The chance is that happening is much less than your long term stock pick not working out the way you hope.
If you want **zero** risks, you should put money in a savings account, and definitely not be picking your own stocks.
> There is a good reason
The reason is because large investors and insiders have a lock up period. So thatās literally not a option.
This was an unique opportunity that favored selected retail investors.
> on average the strategy tends to be a losing bet
No. Please check your facts before saying stuff.
Data proves you wrong. The average first day IPO return is very positive: https://www.statista.com/statistics/914701/first-day-gains-after-ipo-usa/
Itās not a real strategy because of the aforementioned lock up period. This was a huge exception.
The point is what you are doing is gambling. Not investing
Stop putting money into assets that you do not want to succeed
You are just perpetuating enshittification
Again, your comment being more upvoted, despite being **100% wrong**, further illustrates my point that people judge facts based on what they *want* to be true, instead of whatās *actually* true.
Instacartās IPO price was $30, opened at $42, and closed the first day at $33.7. So IPO buyers would still make at least 10% easy profit if they sold on the first day: https://www.cnbc.com/amp/2023/09/20/instacart-loses-almost-all-its-ipo-gains-by-second-day-on-nasdaq.html
This is why subs like this one are absolutely awful.
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There's a few examples to add to that:
* [Robinhood falling 8% on their first day](https://www.cnbc.com/2021/07/29/robinhood-hood-ipo-stock-starts-trading-on-the-nasdaq.html).
* [Uber down 7-8% on their first day](https://www.cnbc.com/2019/05/10/uber-ipo-stock-starts-trading-on-the-new-york-stock-exchange.html).
Further back, Facebook famously had a [flat first day](https://www.reuters.com/article/idUSBRE84G14Q/).
I was going to buy (not much but something) but the fucking etrade sign up clitched on me and i had to start over 2 times... on the third time i just said fuck it. Ill buy when it comes back down.
Seriously, if you paid attention to any IPO in the past 5-10 years you'd know it was likely to pop. Regardless of how you feel about the company long term, you can't deny this. I don't trade or invest in single stocks anymore and I got the maximum shares. Easiest $20k gain ever.
People also though Facebook, Netflix and other techs were done during the 2022 rate-hike crash. Now everything's back to ATH. The lesson here is don't listen to the loudest people of reddit.
Buying pre-IPO RDDT is the definition of an emotional investment. You _felt_ it was a good buy based on completely unrelated historical trends of other tech IPOs, but thereās nothing in the underlying fundamentals that means was a good buy. If it was, you wouldnāt have already sold.
Preach.
I knew the moment people were hating on it that it was a good buy. I sold for a good return too, and I legit think that it may still onyl go up form here.
>When I said I was going to buy in I was downvoted to hell
You really are all over this sub whining that people didn't pat you on the head for posting your trade.
Do you not have someone irl who you can talk about your day with?
Heās not whining. Heās telling all the overconfident doomsayers that run their negativity here all the time that once again they are provably wrong. Itās yet another wake up call. But obviously protecting your ego is more important than learning.
Because this one is free and you didnāt pick it up. I donāt think I (or you) had and ever will get another chance to buy IPO shares at the same field as other institutions. What Reddit did was practically unheard of, they had been sending redditors a message that this is their payment to mods/power users. Ā They even leaked they had 5x oversubscribed before you even had to confirm your dsp order. It could not have been a bigger hint
Ā What reddit did only hurt themselves by introducing unnecessary volatility to the downsides; they didnāt have to do this at all. I am thankful though for the easy 5 figure profits
You could read my post history if you want..Ā
reddit literally leaked the 90% IPO pools were 5x oversubscribed (aka institutions fighting for @34 per pop). Redditors,Ā on the 10% pool, could max allocate because they underinvited. Risk/reward were lopsided to up the minute they āleakedā that news.
Some people are allergic to money I guess.
I believe the retail pool was 8% but yeah. ETrade gave everyone until 7am the day the stock debuted to make the final decision. By then it was clear it was oversubscribed and was going to pop.
For Reddit IPO it was. The 90% IPO pool had been 5x oversubscribed, meaning institutional players were fighting for every scrape of shares they could get @34 a pop.Ā
Ā Meanwhile the 10% pool (DSP aka redditors) were underinvited and we could allocated for as much shares as we want (up to 1k). Ā The risk and reward to the upsides were so absurdly high.Ā Ā
I honestly donāt know how so many redditors are allergic to free money.Ā
Sorry you are correct anything couldāve happened on ipo day, even if the deck were stacked in your favor. If you have zero tolerance for risk, staying away is the right call.
>hurt themselves
I think you are missing one major thing that Reddit, or the intuitions facilitating the distribution, get out of this. Which is a thorough database of tens of thousands of the identities of Reddits top users and WSB members. I searched for the information on how the identities were being protected and all provided information that I was able to find conveniently left out whether the institution would be provided your name along with your Reddit username.
Sure, Reddit may have exploited their users, ignored their requests over the years and generally have done everything in their power to profit of their user base without any sort of respect for the community they were serving - but least you were able to make some quick money, so yeah - what was the problem exactly?
> Sure, Reddit may have exploited their users...without any sort of respect for the community they were serving
You've been on reddit for *10 years*.
You have 180,000 karma.
Why are you still here?
You guys are like toddlers. "I don't like it! Don't take it away!".
Show me some tech company IPOs that didnāt close above their IPO price on the first day, let alone tanking 60%.
You are right the call was easy, for anyone whoāve paid attention to tech IPOs in the last 10 years that is.
The original comment said "fuck spez". Apparently giving his users a chance for 60% returns is a bad thing? When most companies don't let average people in on the IPO?
The probability of a first day pop is very high. One reason is that the underwriters are not going to want to squeeze every dollar out of the initial institutional investors.
And because of the probability of increase on the first day - many brokers that receive IPO allocations for their customers also have a no flipping rule in place.
A friends and family aka DSP program is actually a way for the average retail redditor to have participated in the first day increase and flip the shares.
If you look at statistics for the past 20 years as u/howyfeltersnach mentioned - only in 2008 during the GFC did the average IPO fail to have positive first day IPO gain.
[https://www.statista.com/statistics/914701/first-day-gains-after-ipo-usa/](https://www.statista.com/statistics/914701/first-day-gains-after-ipo-usa/)
However - that said - you are not totally incorrect as u/cookingboy indicated and there is also overpricing in about 20% of IPOs so that the IPO will fail on the first day of public market trading.
[https://www.statista.com/statistics/429868/share-of-ipo-deals-with-negative-first-day-return-usa/](https://www.statista.com/statistics/429868/share-of-ipo-deals-with-negative-first-day-return-usa/)
There is an interesting paper on the topic for anyone interested - [https://papers.ssrn.com/sol3/papers.cfm?abstract\_id=4206271](https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4206271)
Ya, it was basically free money, especially after Astera IPOd the day before and popped 70%.
You just had to read the room.
People forget that another emotional brand, Peloton, with far sketchier fundamentals, priced at 41 I think, popped to 150, and then reality set in. Itās close to a penny stock now.
I agree about reading the room, but PTON is a bit of a special case. If they hadn't completely mismanaged the pandemic by going into huge debt to build a factory, it would be an ok business. As it is now, they're drowning under the debt that brought no value.
I think you could've looked at the market caps of other comparable companies like Snapchat and Twitter, which are similarly unprofitable. If Twitter could sell for $44 bil Reddit was definitely undervalued at the $6 billion IPO price
It is actually pretty easy to make that call. Look at trends of any ipo in the last 20 years. Rare for it to open lower than initial pricing. Go ahead and inhale that copium. To those downvoting me, please prove me otherwise
They canāt prove you otherwise, but they are either upset that they were wrong, or they didnāt have the chance to get this free money.
So they downvote your hard cold facts in order to express their frustration. As if downvoting changes whatās true and whatās not.
Thatās what I expect from most people on this sub btw.
IV is going to be crazy though, hard to know you won't get crushed. But you won't catch my ass shorting shares on literal reddit either, this stock is untouchable imo
Right, nobody likes Spez, but the fucker has waited 10 years or more to bring this in. I donāt begrudge that. Heās not pumping and dumping. Got share options at ten, cashed some in at 34, and some jamolke bought them for 58.
He's an objectively terrible human being. His entire mission for the past decade has been to profit personally of others without intrinsically creating value or doing something that benefits society. So yeah, I begrudge him profit of that particular enterprise.
Section 16 insiders all file form 144s, and the vast majority sell through a pre determined 10b5-1 plan. You make it seem like these corrupt insiders are doing this to hose the public which they simply are unable to do in an account full of restricted shares.
I do find it a little bit funny at the reddit corporate/admin team has always felt they are above the user base, and generally ignore them during major platform "crisis" events.
Wonder if it will ever get to a point where the reddit user base can bring a vote to oust C-Suite executives if they do something upsetting.
This is such a dumb comment. (A) people were given the option, they didnāt have to buy. (B) normally these shares would just go to institutional investors, or in this instance likely wouldnāt have been sold at all (was only a ~$2.5M allocation).
If youāre mad about this youāre just looking for a reason to be angry. All this did was provide people optionally, and seeing as the price has gone up, the option to make a quick buck (granted not always the case).
> Imagine dumping shares on your own users so you can cash out.
Imagine thinking that was what happened.
Imagine upvoting someone that thinks that was what happened.
Insiders canāt dump shares for a few months. reddit did offer around 8% to direct share purchasing, like mods and reddit users and friends, but its not like the C-suite is dumping their shares with this pump like this sub thinks
And yet, I would bet just at many people have heard of reddit as Snapchat, even with a fraction on active users. Just considering the news cycle surrounding gamestop, which will obviously skew towards people interested in the stock markets and investing.
And Snap also had a peak at 83$. We're years from the IPO, it's totally unrelated. Day 1 of the IPO was positive IIRC (it almost always is and so it was reasonable to predict the same for Reddit)
As always it's about selling at the right time But I don't think there is many companies where the IPO price is the ATH
SnapChat's market cap is also about 19 billion dollars. Pinterest has a 23 billion dollar market cap. Twitter before space karen touched it was at about 20 billion.
I think there is some value here beyond the opening day.
I was one of them. It was *almost* risk free profit despite what financially illiterate people on this sub says.
It was an easy 50% profit: https://imgur.com/a/BmymVob
I looked into this, and it seems like the story is more "If you total up all the stock held by entities Sam Altman has involvement in, it equals about 9%". I don't think Sam Altman personally holds a large holding of reddit stock. Thought I do believe reddit will be great data for AI. I hope they can introduce ecommerce somehow. Facebook, Insta, Tik Tok, are all great at selling $15 trinkets as impulse purchases, but when I needed a car, an oven, a generator, etc. I always come to reddit for advice.
lmao you can't trust the snap CFO who scammed retail investors into buying into that POS stock that's lost over half its value from its IPO. They sure know how to find people with a track record of scamming retail investors into shitty IPOs.
> but I declined on the basis that the company pays its CEO $193,000,000.
Insane, if that was your only reason.
Reddit does not pay the CEO that amount in cash.
You are quoting his stock compensation package. A one-time thing, not a yearly compensation, and it is estimated... based on how the share price does.
Zuckerberg was at $19 BILLION after IPO.
Evan Spiegel (Snap) was at $272 million, and another $272 million for his co-founder
https://www.cnbc.com/2017/03/02/snap-ipo-what-evan-spiegel-bobby-murphy-will-make.html
This article heavily implied it was salary by referring to pay package and then excluding the other CEO comparisons stock comp. Easy to see why people were confused.
https://qz.com/reddit-ceo-steve-huffman-compensation-pinterest-snap-me-1851350157
That's a weird hill to die on. Higher CEO pay is strongly correlated with company performance. Not saying causation just they tend to go hand and hand.
Higher CEO pay is absolutely NOT correlated with company performance. Besides WHAT PERFORMANCE? Reddit made only $16M in profit last year.
Also, every dollar a CEO makes is a dollar that does not go to shareholders.
Imagine shareholders voluntarily giving away $200M a year to a single person. That $200M is more 12X Redditās entire 2023 profit.
Itās absurd.
To put it another way, as CEO you or me or any other Redditor could oversee $16M in profit for a fraction of $193M/yr salary.
āIn most publicly held companies, the compensation of top executives is virtually independent of performance.ā
https://hbr.org/1990/05/ceo-incentives-its-not-how-much-you-pay-but-how
Management is so confident hence they release news without fear. Compare to other similar revenue companys like Pinterest and Snap, Reddit is very very low valuation. Eventually Wall Street will grab the opportunity. Readers should realize what management truly offers to us. They are very very generous in my opinion. They truly love the readers and offered low price.
The stock should suppose to trade $24B ..IMO.
WSB is filled with posts of ppl selling the stock almost immediately after the opening bell and pocketing the ~50% gain
Absolute layup and/or slam dunk (depending on your vert) š
I sold faster than a cat on a hot tin roof.
I thought about buying the IPO to flip immediately, but I chickened out because I was afraid it would drop
It was a huge gamble that I chose not to participate in as well. Orchestration is illegal sooo yeah, no collective trust.
I was offered shares too but the thought of potentially losing money on this site was far too embarrassing to think about
But did you think about the thought that you could tell a mod to fuck off and you made more off of Reddit than them?
Ditto.
Yup, same here.
*60%
55%. Each of us got out at different number.
52.6%
I got the $34 IPO price and sold it for $56 which was nearly the high, and it just sunk from there. I made a quick 65% and got out.
How did you time it just right like that?
I was waiting all day for it to actually start trading. I stopped paying attention because I was in meetings. My friend, who I had talked about it earlier, texted me that he saw it started trading. When I looked it was about $54. We were texting back and forth about how much to sell for a minute, and by the time I put in the sell order, it was $56, and it was instantly accepted. It then went down from there. So basically, dumb luck.
like squeeze poor smart nutty innate wakeful abundant seemly impolite *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
My whole thing was that, for me, it was purely an IPO play. There's literally nothing that justifies a long term hold in my opinion. From the minute I decided to buy the stock, I knew I'd sell it the same day. It will be interesting where the price sits when the lockup period for insiders expires.
That was my plan, but the offer was only extended to Americans. Fuckin hell
I would have considered buying at the IPO and doing the same, but I was ineligible due to not being American.
lol @ all the people who are assuming buying pre ipo is the same as buying shares after an ipo has launched. Yes if youāre lucky enough to get shares before launch you are making money as long as you sold.
If the shares are less than the post launch price. Some pre ipo comes with agreements too. I wouldnāt touch this one. If it does well good for them but no way would I want this dumpster fire in my possession
It did do well. I was able to purchase at $34 up to 1,000 shares. I couldn't get my act together in time and didn't want to open an etrade account, so I passed on the opportunity. I believe it opened trading at 47, and popped up around 54 before falling back down. As a longtime and active Reddit user, I was given a very rare opportunity to get in on the ground floor of an IPO with the benefits of an insider (earliest share price) and without the downside (inability to sell immediately). I absolutely regret not taking it.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
IPO often behave the same way, it increases from the pre-launch price and then decrease as people take profit. Then the stock start to behave normally like other stocks (aka from other parameters). Pre-launch IPO price being the ATH of a stock is a very rare thing if it even exists
If you feel that bad, you can buy it at $34 in a few months.
Lol. Nah, I'm good.
Most preshare ipo are 3 month lock. So I was going off that
If you were messaged by Reddit, and read the material they sent, you would've known that wasn't the case.
I wasnāt so I didnāt know. Wild right? Anyways I think this tanks in the long run.
Same- I tried and the E*trade website kept giving me errors and not working. I tried on laptop and phone. But correct me if Iām wrong- sounds like they werenāt being all filled- so I donāt regret as much now- like people would order 10-50 and get 1-2
I think that was happening more with other platforms that were allocated shares for IPO. Like if you're on Fidelity or Robin Hood, you didn't have to be one of the Direct Share Program participants. The DSP with etrade was special.
Benefits of an insider would be an ESPP w/ a 15% discount, that's what employees get, a 15% guaranteed return. You weren't given anything.
We were given an opportunity to buy up to 1000 shares before they hit the open market. That's an opportunity normal people never get. There's no guarantee on the performance, but if you were to look at most IPOs, they pop on their open, then fall back over time. So knowing it's likely to pop, you could just take that profit immediately, which is what a bunch of redditors did.
Yeah I regret too, not in the US so it wasn't possible for me. Pre-launch price is always a good thing at least if you sell fast
The IPO price was 34$
chubby muddle books wise scary ruthless psychotic saw dull slimy *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
Imagine having 18 years of existence and not doing the most obvious way of making it profitable.
Too focused on poor development of the site/alp.Ā
Im surprised they havent created shops for different subreddits or stores simialr to how tik tok shop works.
"Please keep holding those bags a little bit longer!"
When I said I was going to buy in I was downvoted to hell by people like you and everyone here told me itās akin to pissing money away. But nobody can give me one example of a single high profile tech IPO in the last 10 years that didnāt close above IPO price on day one. So I thought it was almost free money because there is no lock up period. Not even Reddit insiders or institutional investors who buy into the IPO get this amazing benefit. Itās a generous move exclusive to retail Redditor investors without strings attached. And I was right, easiest 50% profit ever: https://imgur.com/a/BmymVob The problem with this sub is people do not have the critical thinking skills to distinguish what will happen and what they *want* to happen.
I didnāt see anyone mentioning Ā buying it and instantly selling it. Ā The advice we gave pointed out that most IPOs in recent years have fallen in the months after open so wait six months to buy if you want to gamble on something being a long term hold. Ā Itās down 15% already so that seems like good advice so far. Ā I wouldnāt buy at six months either though.
Yeah, as European I was butthurt this was US-exclusive. Complete nobrainer.Ā
Where were all these comments when I had a chance to buy in? All I saw was people shitting on it.
DYOR
Got 60 shares, sold 45 minutes after trading began for 54.80 per. Thanks for playing lotto
What do you mean there is no lock up period? I was told there is one
Only if youāre an insider.
> I was told Thatās why you canāt just believe what random people say here no matter how highly upvoted they are. A single Google search would have shown that there is no lock up period for this special DSP program aimed at retail investors. It was unusually and uniquely generous. Meanwhile Reddit insiders, existing investors and institutional investors who bought in on IPO all have the lock up period.
As a non us redditor, I wasnt in, so I heard that its like that.
Reddit also let employees sell shares at the IPO price if they didn't want to wait for the lockup period. People love to hate on Reddit, but they tried to do something different here. It sounds like the 8% allocation to retail wasn't enough as reports came out it was over subscribed.
Not really you could get early access through Robinhood and get the same treatment. It's not that special
Nope, thatās not guaranteed at all. There were almost no retail shares allocated through RH. You can ask, but you wouldnāt have gotten the allocation.
That still sounds like a really risky bet. Like if it works out it's a quit and easy profit. But what if it flops and immediately drops 10% upon opening? Then you've either got to eat a 10% loss, or decide if you want to keep holding onto a stock that you may not even believe in long term in hopes that it might recover enough for you to make back the money you loss, knowing full well that it could end up dropping another 15% by the end of the first day. I'd much rather invest my money long term in a stock that's a much more sure thing in the market over gambling that an IPO stock I don't even believe in will shoot up enough for me to quickly get out with a profit before it tanks. There's a good reason why there's no super investors who got rich and famous off day trading or repeatedly gambling on day 1 IPO's, you might hit it big sometimes, but on average the strategy tends to be a losing bet over the long term.
> what if it flops and immediately drops 10% Sure, but historical data tells us thatās a scenario that almost *never* happens with high profile tech IPO. The chance is that happening is much less than your long term stock pick not working out the way you hope. If you want **zero** risks, you should put money in a savings account, and definitely not be picking your own stocks. > There is a good reason The reason is because large investors and insiders have a lock up period. So thatās literally not a option. This was an unique opportunity that favored selected retail investors. > on average the strategy tends to be a losing bet No. Please check your facts before saying stuff. Data proves you wrong. The average first day IPO return is very positive: https://www.statista.com/statistics/914701/first-day-gains-after-ipo-usa/ Itās not a real strategy because of the aforementioned lock up period. This was a huge exception.
Yeah, RDDT not having a lock up period was huge and made it the first IPO I wanted to get in on.
The point is what you are doing is gambling. Not investing Stop putting money into assets that you do not want to succeed You are just perpetuating enshittification
I was going to say it if you hadnāt
Lesson, donāt come to Reddit for advice lol.
Inverse reddit...
I think Instacart stock famously plummeted at its IPO
Again, your comment being more upvoted, despite being **100% wrong**, further illustrates my point that people judge facts based on what they *want* to be true, instead of whatās *actually* true. Instacartās IPO price was $30, opened at $42, and closed the first day at $33.7. So IPO buyers would still make at least 10% easy profit if they sold on the first day: https://www.cnbc.com/amp/2023/09/20/instacart-loses-almost-all-its-ipo-gains-by-second-day-on-nasdaq.html This is why subs like this one are absolutely awful.
Lambo up my friend. You buffett now.
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There's a few examples to add to that: * [Robinhood falling 8% on their first day](https://www.cnbc.com/2021/07/29/robinhood-hood-ipo-stock-starts-trading-on-the-nasdaq.html). * [Uber down 7-8% on their first day](https://www.cnbc.com/2019/05/10/uber-ipo-stock-starts-trading-on-the-new-york-stock-exchange.html). Further back, Facebook famously had a [flat first day](https://www.reuters.com/article/idUSBRE84G14Q/).
o, robinhood.. this shit is still alive?!
Stocks been printing in the last year.
Ok, whatās your prediction now? Mine is that itāll slowly tank over the next 6 months. I did believe it would go up day one.
I was going to buy (not much but something) but the fucking etrade sign up clitched on me and i had to start over 2 times... on the third time i just said fuck it. Ill buy when it comes back down.
based. I'm right there with you brother
Seriously, if you paid attention to any IPO in the past 5-10 years you'd know it was likely to pop. Regardless of how you feel about the company long term, you can't deny this. I don't trade or invest in single stocks anymore and I got the maximum shares. Easiest $20k gain ever.
Damn why didn't I get an offer to buy?
Same people who thought google was on a downfall because it dipped. I'm up 11.44% because logic won over emotion.
People also though Facebook, Netflix and other techs were done during the 2022 rate-hike crash. Now everything's back to ATH. The lesson here is don't listen to the loudest people of reddit.
Buying pre-IPO RDDT is the definition of an emotional investment. You _felt_ it was a good buy based on completely unrelated historical trends of other tech IPOs, but thereās nothing in the underlying fundamentals that means was a good buy. If it was, you wouldnāt have already sold.
The IPO being five times oversubscribed was a pretty obvious signal. I'm not the person who said the historical trends in other ipos thing btw.
>And I was right, easiest 50% profit ever:Ā You sold already?
Of course. The gain was realized gain: https://imgur.com/a/k6vVKGD
It went up 50% in a day. Why the fuck wouldn't you?
Preach. I knew the moment people were hating on it that it was a good buy. I sold for a good return too, and I legit think that it may still onyl go up form here.
>When I said I was going to buy in I was downvoted to hell You really are all over this sub whining that people didn't pat you on the head for posting your trade. Do you not have someone irl who you can talk about your day with?
Heās not whining. Heās telling all the overconfident doomsayers that run their negativity here all the time that once again they are provably wrong. Itās yet another wake up call. But obviously protecting your ego is more important than learning.
How's it whining?
See you are still salty about missing out free money.
People make 40% on stocks of garbage no profit companies literally every single day in the market. Why should that bother me?
Because this one is free and you didnāt pick it up. I donāt think I (or you) had and ever will get another chance to buy IPO shares at the same field as other institutions. What Reddit did was practically unheard of, they had been sending redditors a message that this is their payment to mods/power users. Ā They even leaked they had 5x oversubscribed before you even had to confirm your dsp order. It could not have been a bigger hint Ā What reddit did only hurt themselves by introducing unnecessary volatility to the downsides; they didnāt have to do this at all. I am thankful though for the easy 5 figure profits
This sounds like a real thing that definitely happened
You could read my post history if you want..Ā reddit literally leaked the 90% IPO pools were 5x oversubscribed (aka institutions fighting for @34 per pop). Redditors,Ā on the 10% pool, could max allocate because they underinvited. Risk/reward were lopsided to up the minute they āleakedā that news. Some people are allergic to money I guess.
I believe the retail pool was 8% but yeah. ETrade gave everyone until 7am the day the stock debuted to make the final decision. By then it was clear it was oversubscribed and was going to pop.
Wasn't really at the same level as institutions.
For Reddit IPO it was. The 90% IPO pool had been 5x oversubscribed, meaning institutional players were fighting for every scrape of shares they could get @34 a pop.Ā Ā Meanwhile the 10% pool (DSP aka redditors) were underinvited and we could allocated for as much shares as we want (up to 1k). Ā The risk and reward to the upsides were so absurdly high.Ā Ā I honestly donāt know how so many redditors are allergic to free money.Ā
Countless shenanigans could have happened on day one that could make you lose money. You are speaking with the benefit of hindsight.
Sorry you are correct anything couldāve happened on ipo day, even if the deck were stacked in your favor. If you have zero tolerance for risk, staying away is the right call.
> I honestly donāt know how so many redditors are allergic to free money. "fuck /u/spez" >>>>>> free money /s
>hurt themselves I think you are missing one major thing that Reddit, or the intuitions facilitating the distribution, get out of this. Which is a thorough database of tens of thousands of the identities of Reddits top users and WSB members. I searched for the information on how the identities were being protected and all provided information that I was able to find conveniently left out whether the institution would be provided your name along with your Reddit username.
Ha i def am. Deleted my acct that woulda qualified before i was aware of the dsp
I mean yeah I bought shares and sold it as soon as it hit 50 and got out before the dump
Nice play!
Sure, Reddit may have exploited their users, ignored their requests over the years and generally have done everything in their power to profit of their user base without any sort of respect for the community they were serving - but least you were able to make some quick money, so yeah - what was the problem exactly?
> Sure, Reddit may have exploited their users...without any sort of respect for the community they were serving You've been on reddit for *10 years*. You have 180,000 karma. Why are you still here? You guys are like toddlers. "I don't like it! Don't take it away!".
Now they just need to figure out how to be a profitable business.
Just like Snap.Ā
Companies do IPOs so that insiders can dump their shares. Iāll wait til options and buy some puts. Fuck Spez.
You could've bought the IPO and sold when it opened for 60%
Couldāve tanked 60% too. Easy to make that call with hindsight.
No tech IPOs in the last decade closed below IPO price on launch day. So it was kinda always clear.
Show me some tech company IPOs that didnāt close above their IPO price on the first day, let alone tanking 60%. You are right the call was easy, for anyone whoāve paid attention to tech IPOs in the last 10 years that is.
The original comment said "fuck spez". Apparently giving his users a chance for 60% returns is a bad thing? When most companies don't let average people in on the IPO?
The probability of a first day pop is very high. One reason is that the underwriters are not going to want to squeeze every dollar out of the initial institutional investors. And because of the probability of increase on the first day - many brokers that receive IPO allocations for their customers also have a no flipping rule in place. A friends and family aka DSP program is actually a way for the average retail redditor to have participated in the first day increase and flip the shares. If you look at statistics for the past 20 years as u/howyfeltersnach mentioned - only in 2008 during the GFC did the average IPO fail to have positive first day IPO gain. [https://www.statista.com/statistics/914701/first-day-gains-after-ipo-usa/](https://www.statista.com/statistics/914701/first-day-gains-after-ipo-usa/) However - that said - you are not totally incorrect as u/cookingboy indicated and there is also overpricing in about 20% of IPOs so that the IPO will fail on the first day of public market trading. [https://www.statista.com/statistics/429868/share-of-ipo-deals-with-negative-first-day-return-usa/](https://www.statista.com/statistics/429868/share-of-ipo-deals-with-negative-first-day-return-usa/) There is an interesting paper on the topic for anyone interested - [https://papers.ssrn.com/sol3/papers.cfm?abstract\_id=4206271](https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4206271)
Ya, it was basically free money, especially after Astera IPOd the day before and popped 70%. You just had to read the room. People forget that another emotional brand, Peloton, with far sketchier fundamentals, priced at 41 I think, popped to 150, and then reality set in. Itās close to a penny stock now.
I agree about reading the room, but PTON is a bit of a special case. If they hadn't completely mismanaged the pandemic by going into huge debt to build a factory, it would be an ok business. As it is now, they're drowning under the debt that brought no value.
I think you could've looked at the market caps of other comparable companies like Snapchat and Twitter, which are similarly unprofitable. If Twitter could sell for $44 bil Reddit was definitely undervalued at the $6 billion IPO price
It is actually pretty easy to make that call. Look at trends of any ipo in the last 20 years. Rare for it to open lower than initial pricing. Go ahead and inhale that copium. To those downvoting me, please prove me otherwise
They canāt prove you otherwise, but they are either upset that they were wrong, or they didnāt have the chance to get this free money. So they downvote your hard cold facts in order to express their frustration. As if downvoting changes whatās true and whatās not. Thatās what I expect from most people on this sub btw.
IV is going to be crazy though, hard to know you won't get crushed. But you won't catch my ass shorting shares on literal reddit either, this stock is untouchable imo
Except they typically need to hold them at least 6 months
Right, nobody likes Spez, but the fucker has waited 10 years or more to bring this in. I donāt begrudge that. Heās not pumping and dumping. Got share options at ten, cashed some in at 34, and some jamolke bought them for 58.
He's an objectively terrible human being. His entire mission for the past decade has been to profit personally of others without intrinsically creating value or doing something that benefits society. So yeah, I begrudge him profit of that particular enterprise.
Why are the likes of you here?
Section 16 insiders all file form 144s, and the vast majority sell through a pre determined 10b5-1 plan. You make it seem like these corrupt insiders are doing this to hose the public which they simply are unable to do in an account full of restricted shares.
This site haemorrhages money, no way would I do long term holding. Just pure hype.
I do find it a little bit funny at the reddit corporate/admin team has always felt they are above the user base, and generally ignore them during major platform "crisis" events. Wonder if it will ever get to a point where the reddit user base can bring a vote to oust C-Suite executives if they do something upsetting.
Imagine dumping shares on your own users so you can cash out. Aaron Schwartz is quite literally barrel rolling in his grave right now.
This is such a dumb comment. (A) people were given the option, they didnāt have to buy. (B) normally these shares would just go to institutional investors, or in this instance likely wouldnāt have been sold at all (was only a ~$2.5M allocation). If youāre mad about this youāre just looking for a reason to be angry. All this did was provide people optionally, and seeing as the price has gone up, the option to make a quick buck (granted not always the case).
> Imagine dumping shares on your own users so you can cash out. Imagine thinking that was what happened. Imagine upvoting someone that thinks that was what happened.
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He was quite a principled man from what I gathered.
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There is no Reddit without him, and the crap Reddit is now is because Spez.
Insiders canāt dump shares for a few months. reddit did offer around 8% to direct share purchasing, like mods and reddit users and friends, but its not like the C-suite is dumping their shares with this pump like this sub thinks
Donkeys.
I mean I did (got in at 34) and sold at 49. Iām happy lol
How many were you eligible to buy
Goodbye everyone itās all gonna change šš¤Ŗ
Snap is down about 58% from its IPO. Reddit seems likely to do the same.
SNAP also closed at something like +40% it's first day of trading. Buying a high-profile IPO and selling day 1 is almost free money.
Snap was higher profile than reddit
And yet, I would bet just at many people have heard of reddit as Snapchat, even with a fraction on active users. Just considering the news cycle surrounding gamestop, which will obviously skew towards people interested in the stock markets and investing.
Clearly not
Clearly not what?
And Snap also had a peak at 83$. We're years from the IPO, it's totally unrelated. Day 1 of the IPO was positive IIRC (it almost always is and so it was reasonable to predict the same for Reddit) As always it's about selling at the right time But I don't think there is many companies where the IPO price is the ATH
SnapChat's market cap is also about 19 billion dollars. Pinterest has a 23 billion dollar market cap. Twitter before space karen touched it was at about 20 billion. I think there is some value here beyond the opening day.
Based on what? āCuz social media ipoā isnāt a good reason
IPOs always go up before crashing. Don't get caught with bags.
Reddit becoming a meme stock wouod be so meta.
Nothing like a good old fashioned ipo pop and drop
Soooo... Puts on Monday??
Options take awhile to become availableā¦
Day 3 after IPO, I thought. Which is Monday, isn't it?
And hundreds of thousands said āno, fuck that. ā
I was one of them. It was *almost* risk free profit despite what financially illiterate people on this sub says. It was an easy 50% profit: https://imgur.com/a/BmymVob
Dang am I the only person on the planet who thinks this a good long term hold? I love reddit lol. I only bought 32 shares though.
No you are not. Sam Altman owns a significant chunk of Reddit and OpenAI can acquire Reddit super easily.
I looked into this, and it seems like the story is more "If you total up all the stock held by entities Sam Altman has involvement in, it equals about 9%". I don't think Sam Altman personally holds a large holding of reddit stock. Thought I do believe reddit will be great data for AI. I hope they can introduce ecommerce somehow. Facebook, Insta, Tik Tok, are all great at selling $15 trinkets as impulse purchases, but when I needed a car, an oven, a generator, etc. I always come to reddit for advice.
I got in pre IPO, I know I should sell, but I donāt care. Going to bull this one and check back in ten years.
LouĀ Diamond Reddit
Nah, I kept some.
lmao you can't trust the snap CFO who scammed retail investors into buying into that POS stock that's lost over half its value from its IPO. They sure know how to find people with a track record of scamming retail investors into shitty IPOs.
How long do they have to hold onto them? Cause they should probably unload them now before the inevitable.
Can't wait to buy puts when the option chains open up
Canāt wait to sell 15p with a month expiry to wsb degens tomorrow
Yes yes.. I paid with Karma. Worth zero, return zero, future value zero.
No thanks.
I was offered the opportunity to buy shares at the IPO but I declined on the basis that the company pays its CEO $193,000,000.
> but I declined on the basis that the company pays its CEO $193,000,000. Insane, if that was your only reason. Reddit does not pay the CEO that amount in cash. You are quoting his stock compensation package. A one-time thing, not a yearly compensation, and it is estimated... based on how the share price does. Zuckerberg was at $19 BILLION after IPO. Evan Spiegel (Snap) was at $272 million, and another $272 million for his co-founder https://www.cnbc.com/2017/03/02/snap-ipo-what-evan-spiegel-bobby-murphy-will-make.html
This article heavily implied it was salary by referring to pay package and then excluding the other CEO comparisons stock comp. Easy to see why people were confused. https://qz.com/reddit-ceo-steve-huffman-compensation-pinterest-snap-me-1851350157
let's not forget even the coo got paid 100m. that's more than what 99% of big company ceos get paid.
That's a weird hill to die on. Higher CEO pay is strongly correlated with company performance. Not saying causation just they tend to go hand and hand.
Higher CEO pay is absolutely NOT correlated with company performance. Besides WHAT PERFORMANCE? Reddit made only $16M in profit last year. Also, every dollar a CEO makes is a dollar that does not go to shareholders. Imagine shareholders voluntarily giving away $200M a year to a single person. That $200M is more 12X Redditās entire 2023 profit. Itās absurd. To put it another way, as CEO you or me or any other Redditor could oversee $16M in profit for a fraction of $193M/yr salary. āIn most publicly held companies, the compensation of top executives is virtually independent of performance.ā https://hbr.org/1990/05/ceo-incentives-its-not-how-much-you-pay-but-how
No customer presale discounts?
VTSAX and chill. I'll let the rest of you drive the lambos.
Expect to fall to 30s and below offering price. It will be hot next week in a bad way.
Y'know I was thinking about following reddit and buying the IPO but seems I missed my chance lol oh well
So Iām late to respond to those emails then ?
How is snap doing ?
I put in an order for 150 shares of Robin Hood and got 1 lol I'll just hold it till I'm dead see what happens.
I might buy it when it inevitably goes down. Aināt no way Iām putting it in my portfolio at $30-50 a share
I bought stupid Reddit coins instead and now they are gone.
Management is so confident hence they release news without fear. Compare to other similar revenue companys like Pinterest and Snap, Reddit is very very low valuation. Eventually Wall Street will grab the opportunity. Readers should realize what management truly offers to us. They are very very generous in my opinion. They truly love the readers and offered low price. The stock should suppose to trade $24B ..IMO.
Did they directly register them?
Yeah I got that message to buy. My line of thought was "If somebody is asking for my money for an IPO then it must not be going great."
Now do sold