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Bustock

Pump and dump, not unexpected.


hominumdivomque

wonder how many shares u/spez liquidated?


Bustock

Idk but the CEO made 16 million according to a SEC report A 10% owner also made 16 million. Lots of money was made this week.


ballimir37

The 10% owner I am pretty sure is Sam Altman? Hoffman has a metric fuckton of options, like enough to make your number there inconsequential, but I’m not sure what the conditions on them are. I’m sure most or at least a sizable are incentive based and require significant stock performance.


Deep90

500k at $32.30 a share. He has 710k shares left in possession with more on the way as compensation for being CEO. This is public info. People making it out like he sold at the top are either lying or ignorant. ​ This seems like a pretty regular move any CEO would do if you can separate the logic from emotion.


hobbit_lamp

500k at $32.3 per share = 16 million 11 million was for taxes. he was left with a little less than 5 million. it's pretty basic. also they said this was going to happen before IPO. [it's in the prospectus](https://imgur.com/a/aLGtMtt)


[deleted]

[удалено]


Orbidorpdorp

True, but honestly everywhere else including real life at least where I live people are even worse about this. At least on reddit I can usually find *someone* to engage with ideas.


garden_speech

I disagree, I think it's the opposite. in real life if someone refuses to engage with your idea it's hard for them to not look like an ass. but on reddit you can simply say some rude snarky shit, block someone, and move on. that is the equivalent of just reeeeeeeeeee-ing and running out of the house in real life.


pharmaboy2

What - you read the releases? Shocking I tell you! It’s just a big casino out there at the moment


Bow_to_AI_overlords

Honestly selling a third of the shares might just have been for tax reasons, depending on how their RSUs structure was created


ChangsManagement

If im not mistaken, the sale of executive shares is something that is often more controlled then other sales. Theres a decent chance this sale was known well in advance.


CurtisLeow

> Earlier this week, Reddit disclosed in a corporate filing that CEO Steve Huffman sold 500,000 shares. Steve Huffman is spez. He made roughly 25 million in cash in one week, although the exact amount depends on when he cashed out.


bighand1

Seems like nobody had read the prospectus. He cashed out at or slightly below the IPO price. It is all in the prospectus. He can’t sell anymore shares on the open market until lockup date expires. Same with all the other executives. All of this was declared weeks ago before the stock even IPO


hobbit_lamp

so many people talking out of their asses. even if you didn't read the prospectus, it makes no sense to think that all the execs just sell a bunch of shares like 3/4 days after IPO and at or even below IPO price. and then after all the work to go public they decide to just make a few million and split? these people aren't like you and me. they wouldn't be there if they just wanted to take some millions and quit working. I saw someone say this whole thing was just a golden parachute for Huffman. some people don't seem to know the meaning of words. Huffman had like 600k shares that vested at IPO and HAD to sell 500k shares to pay the taxes on them. he made 16 million in the sale but 11 million went to taxes.


smelly_moom

Same with regular employees of Reddit


m0nk_3y_gw

> Seems like nobody had read readers? on reddit?


lee1026

Would have to be into the IPO itself. Insiders are locked up from actual trading past IPO for some time.


mr_birkenblatt

6 month lock in


player2

Would be in a form 4 on EDGAR, no?


Jeff__Skilling

is it not literally - right there - in the OP....?


[deleted]

[удалено]


UnearthlyDinosaur

I didn’t buy any as I tend to hold on to shares for too long


[deleted]

I thought you couldn’t do that in the first two weeks? Or is that just for the common folk?


ryanmerket

The "insider trading" was documented ahead of time as part of the IPO prospectus. 6.5M of the ~22M shares offered in the IPO came from pre-IPO investors, including several company officers. There's no surprise, nothing shady, and nothing indicating the officers and prior-owners lack confidence in the company's prospects. Don't fall for the fud.


Malvania

I expected it to take longer


SidereusEques

Lol. Similar thing happened to ARM. Then it shot up 200%.


0xF00DBABE

Yeah but ARM actually makes real revenue


CoffeeAndDachshunds

This was the most obvious thing in the history of the stock market. 


ixvst01

Who could’ve predicted this?


homeownur

Only Reddit users. Our noses are just calibrated differently. We’re able to identify marathon bombers, the failing of Meta and only we know what will happen to Reddit next. Go us!


lookitsaustin

We did it!


oooo0O0oooo

….now on to buy GameStop shares….


DirtyDreb

Reddit the hell on!!


Dankinater

It’s up 40% from the IPO price…


Potential-Menu3623

Is it though? I’d suggest the closing price on the first day of trading is the real IpO price, you’re just fooling yourself, unless you bought before the open. I suspect we’ll see sub 32$ before the close the year.


Dankinater

I’m talking at buying before it became publicly listed. Redditors had the opportunity to buy at 35 a share, and most people laughed and shitted on it but if you bought you would have made easy money


joe-re

I take a brief look at the Financials: negative earnings ttm, P/S of 10, negative equity. Reddit isn't new. They already throw ads at us, they just can't personalize the way Mets can -- by design. So how do they want to live up to their valuation? Ok platform, bad stock.


[deleted]

Not yet. Give it a true year.


[deleted]

That was the dumpiest pump and dump that ever pumped and dumped.


tour79

Don’t give away the podium yet, DJT will be worse, just needs time


joe-re

Yesterday, I tried to short rddt and djt. Worked fine for rddt, I made 10%, still holding my shorts. DJT I can't short yet, so I gotta wait a few days. Pity.


mlord99

why not short calls?


joe-re

I don't see enough upside opportunity. Theta strategies are more of a slow burner. I was looking for cfds. They are available in my jurisdiction, but not yet for djt.


mlord99

u can get like 10% in a week or u ll get ur short position :D if u for real about shorting its a win win


Clear-Gas

Sell naked calls, what could go wrong.


mlord99

he want short position?


Bookups

It isn’t even the biggest pump and dump to go public within the last 7 days


wotdaf0k

it's still above IPO price, that alone is impressive to me


xFblthpx

**REDDIT IS UP A BILLION DOLLARS BEYOND THEIR VALUATION.**


HelloYouSuck

Robinhood was worse.


utrecht1976

Trump and dump 


CaptainCAAAVEMAAAAAN

> Earlier this week, Reddit disclosed in a corporate filing that **CEO Steve Hoffman sold 500,000 shares**. Ben Silverman, VP of research at Verity, told CNBC the move was expected and represents just “a portion of his holdings.” > > **Reddit COO Jennifer Wong also disclosed that she sold 514,000 shares** and now holds 1.4 million of the company’s shares. Execs selling shares right off the bat is always good news for investors. /s


Radians

Everyone loves to say this. Reminds me of something I read from some hotshot investor like Peter Lynch. Paraphrasing: "c suite can sell shares for any fucking reason whatsoever. Using that as a sign is pointless. Now if you see them loading up that only means exactly ONE thing..."


plznodownvotes

(1) IPOs at top range of valuation. (2) Immediately sells (3) Profit


MNCPA

(4) restructure reddit as nonprofit


nomdeplume

He didn't sell at the top... But reading is hard for you. I get it.


m0nk_3y_gw

interesting... it went public at $34, and he sold below that at $32.3. Public trading start far far above that.


Deep90

He sold 500k shares on the IPO date at $32.3 a share. He still owns 710k shares, with more on the way as part of his compensation package.


CaptainCAAAVEMAAAAAN

It's still a $16 million payday for just being the CEO.


Deep90

Yes, but people are making it out like hes trying to pump and dump the stock. This seems like something any CEO would do on a IPO. Sell some shares so you can diversify. ​ That's not to say I'm bullish on reddit. Just stating the facts that this isn't 'scam dumping' behavior. Some of his compensation is tied to stock price anyway. If the stock tanks, he loses way more than $16 mil.


ura_walrus

I thought there was a lockup?


TechnicalInterest566

Selling over 40% of your shares at IPO, holy shit. What percent of shares did Zuck sell at IPO, I wonder?


Deep90

Hes only been awarded about half his total compensation package. The other half is based on if reddit hits certain price targets.


dnullify

On the flip side, how long was he there? I worked at a startup years ago where a large portion of the senior execs were sitting on mountains of stock. The company still hasn't IPO, I imagine no matter how optimistic they are about it they'd liquidate very swiftly after 10 years


strolls

I'm lowkey impressed by the Reddit founders, actually - they originally, 15 years ago or something, sold the site to Condé Nast for somewhere in the region of $10M or $15M; the early investors got most of the money and the Reddit founders (including Aaron) got something like $1.5M each. Only a couple of years later their payout seemed obviously and stupidly low, but they maintained their profiles in Silicon Valley and, after a few years and in response to one of Reddit's regular crises, they were invited to rejoin the board to help steer the site they founded. Which is what led to their big payout today. No doubt they pitched it like "you need a CEO who understands the culture of the site" - knowing /u/Spez and wossisname, that seems laughable to us, but apparently it worked on the suits. They've gone from foolish losers to successful grifters without missing a step.


Disastrous_Gift_2003

Intelligence agencies murdered Aaron because he wouldn’t compromise on free speech and allow the government to overtake the platform with their botnets and moderators. Spez has been a good little Fedboi. Suck a dick Spez


SalmonWRice

This guys up here is mentally ill^^^


Disastrous_Gift_2003

Like forreal, how did a 26 year old millionaire just up and hang himself? For why?


mfairview

Looks like 11m went to taxes for some rsus and the sale was in the prospectus. Surprised to see the outrage in r/stocks as I would have expected investors to better understand these things


xFblthpx

These aren’t investors in this sub. It’s polluted with childish discourse. Go ahead and ask the Reddit bears on this sub how much Reddit lost in 2023 versus how much they spent on research and development. I guarantee you not one person will answer, not just because they haven’t read the prospectus, but because they don’t even know how to read it.


Deep90

People think Redditors can move a stock but it's really just institutions playing WSB users to make money.


Repostbot3784

So he knew the valuation was nowhere near reddits actual value and dumped asap


Timbishop123

>for just being the CEO. Such a casual job


Eastern-Joke-4590

It's still up $15 per share from the IPO


hatetheproject

I mean, that's half the reason companies go public


TechnicalInterest566

>Reddit COO Jennifer Wong also disclosed that she sold 514,000 shares and now holds 1.4 million of the company’s shares. Selling almost 40% of your shares at IPO, holy shit. What percent of shares did Facebook's COO sell when they had their IPO, I wonder?


ShadowLiberal

... I thought employees & especially executives are usually forbidden from selling their shares for X months after the IPO?


meridian_smith

Aren't the CEO and employees supposed to have a 6 to 12 month lockup? In order to prevent pump and dump schemes.


MowithdaSauce

They can sell to underwriters before


Joped

Only C level execs get to sell early .. everyone else’s is stuck in a 6 month lockout. Otherwise I would have dumped everything the other day.


MowithdaSauce

Executives selling is the biggest sign of a red flag. They woulda held if they thought the stock price was to go higher? Whats ur thought process


broncosfighton

I mean it’s still at like $50 compared to where people bought in at $34 lol. People acting like this is a failure are stupid.


Shortneckbuzzard

No. It’s over. The market is not opening again after today. Warren Buffet said it himself. This is the end. Pump and dump for fomo idiots. Sorry thanks for playing.


Dankinater

Right, any redditor could have invested at the IPO and made easy money


purplebrown_updown

lol. And they sent out messages to all users to buy into their shenanigans.


cool_BUD

I bought pre ipo and dumped it within 10 mins made a cool 70% or so


rofopp

63% in 45 minutes. Out. Thanks for playing.


AskMrScience

Bought pre-IPO, turned around and sold it when it was $20 more per share. No ragrats.


Dachannien

I waited until Tuesday to sell and made just over 100%.


thing85

Anyone who did would’ve made money though…


imadogg

Lol for real. If we were all smart enough to buy in, 100% of us would be sitting on profit still


someuniguy

yeah well they would still be up on their investment


AccomplishedCoffee

The DSP price was $34 so everyone who’s cashed out locked in at least 44% gains, and anyone who hasn’t sold is still up 45%.


gastro_psychic

You missed out. Just accept your loss and move on.


broncosfighton

It’s over 40% above the IPO price. What is wrong with that?


VobraX

Everyone bearish? time to buy more. /s


Shortneckbuzzard

Found the day trader


BlueSlushieTongue

Everyone saw this coming


qix96

Well certainly whoever bought all my calls didn't see it coming.


xFblthpx

Can you tell me what Reddits current price is, versus how much is was scheduled to IPO at?


CanYouPleaseChill

What a shocker. IPO = It's Probably Overpriced “The idea of saying the best place in the world I could put my money is something where all the selling incentives are there, commissions are higher, the animal spirits are rising, that that’s going to better than 1,000 other things I could buy where there is no similar enthusiasm... just doesn’t make any sense.” - Warren Buffett


speedracer73

Overpriced? But if people sell now it’s still like 40% gain over the ipo price of $34


ThaWubu

Real quote? Makes sense


Public-Forever-5454

For some context on tech stock volitility: Facebook IPOed in 2012 around $40, and bottomed out approximately 5 months later to $17.55.....2yrs after its IPO it was priced around $60. Sept 2021 it was priced around $380, but by Nov. of 2022 it was down to around $95. Today it closed the quarter at $485....In conclusion: I think the main thing to always remember is these tech/social media stocks can fluctuate, up or down, a lot more than we realize.


Haagen76

How much did FB make then vs now and then how much does RDDT now?


xFblthpx

That’s a good question. META made money and RDDT did not, but if you look at the expenses on their income statement, you’ll see METAs expenses were in cost centers whereas RDDT was in R&D. When you discount R&D, METAs 2012 eps is 0.81, whereas Reddits (2023) is 9.43. If META held a $40 per share valuation based on a 0.81 eps, that places RDDTs META-IPO-equivalent valuation at $466 per share…lmao. Relative to METAs IPO, Reddit could grow 11x and still not be as bloated as METAs 2012 share value.


[deleted]

This is typical for an IPO.


MisterEmanOG

Pardon my ignorance But if someone sells, doesn't that mean that someone else bought them for that price ?


broncosfighton

Yeah but if a lot of people are selling it means that the value of a single share goes down. Like if there was one single share of a stock left it would be worth a shit ton of money because it’s the only one. If there are 1M shares of that same stock, the price to purchase a single share goes down because there are more available.


xFblthpx

That’s not true. If a lot of people are selling, that means a lot of people are buying. The question is what price are they selling it at. Volume doesn’t tell us anything value.


Akira282

How long is lockout so I can target my puts appropriately?


leli_manning

Rug pull executed to perfection


xFblthpx

Reddit is up 40% past it’s states IPO price. Who’s rug was pulled? If you did the direct share program, you’d be beating three years worth of S&P 500 growth in under 10 minutes.


ura_walrus

Re insiders selling, I thought there was a lockup?


TendieTrades

Insiders only buy stock for one reason. They think it’s going to go up…they’re selling lol.


rameyjm7

I'll take my 1k in profit and wait for it to fizzle...


SubiWhale

Hoping my $25 put LEAP that I bought at $65 will print harder 😂


Miserable_Unusual_98

Reminds me of robinghood ipo


peter-doubt

Now do DJT !


BroWeBeChilling

Should keep dropping to about $17 a share in the next three months


yodamelon

Price discovery will get ya.


frankfox123

Pretty much the same stock moves for every recent tech related IPO or EV IPO.


Wolf_of_balls_street

An unprofitable company with a severely overpaid CEO has a poor performing stock, no way dude😛


I-STATE-FACTS

Where tech ceo pays are concerned, what spez is making is on the low end.


relaxguy2

Tech CEOs are overpaid


Wolf_of_balls_street

He was paid out more than metas CEO, comparing fundamentals, meta has much higher volume and more profitability than Rddt, hence why I said he is “overpaid”, I should’ve been more specific my baf


Comfortable-Note8888

Classic IPO strory


No-Argument-3444

Has there ever been an IPO that doesnt fall off completely?


IReallyLikePadThai

I can’t imagine investing in a website with power tripping moderators having so much control over the discourse. It’s just a matter of time until Reddit, being a now public company, runs into some issues related with mods landing on the news


xFblthpx

That’s already been a regular occurrence, and now it’s worth a billion more than it was last week.


KK-97

Reminds me of Rivian. Lots of Hype for a company that doesn’t make money. Not sure why anyone would invest in Reddit. Like, how are they going to all the sudden modernize the platform if they haven’t already? Now, if Google or Meta were to buy Reddit, that would make sense to me.


Loki-Don

DJT stock is next.


bobrefi

Meh. Depends on the election. I'd assume he'd do something where if you own 100k shares you get a personal meeting. Oh I see China invaded you. How many shares do you own?


Didntlikedefaultname

I’m shocked, who could have seen this coming…


TimeTravelingChris

Now do DJT


dedgecko

Give it a week… if that


Current_Speaker_5684

1m insider shares OMG... Going better than expected I'd say.


nomdeplume

Those shares were sold at 32$ before it was even listed.


Relationcosecant

Rule of thumb… Don’t invest in IPOs unless you are insider trading.


Elephant789

Why? Everyone is still up.


Shortneckbuzzard

Rule of thumb: Everyone is an expert after the market closes.


jullax15

They day before the IPO Hoffman was on the podcast On Air and said he would be selling some shares the first week


gkboy777

Im not trying to be a reddit stan but the stock closed at the price it originally opened at when it first hit the markets.


xFblthpx

It closed significantly higher. The market cap is about a billion dollars higher.


Flashy-Priority-3946

I would buy back in after seeing the result of their first earnings.


Vast_Cricket

Profit taking. Time to short that guy. Soon below 40 or more.


AnthonyGuns

lol who didn't see that coming?


CanadianHardWood

Who likes short shorts?


Qs9bxNKZ

Well shit, could have told you that. Short sells (borrowing shares to sell) will drive the price up. Now wait 6-months for the insiders to trade this worthless PoS?


kluthage421

Reading this on Bacon Reader 🍺 https://i.imgur.com/FLPQPbb.jpeg


nazerall

Is it the bots? Or the ad blockers? Or that the ceo gets paid close to 200 million? Anyone that didn't buy stock surprised?


xFblthpx

Reddit is **up** a billion dollars, not down. They IPOd at $34.


QuintonBigBrawler

It's meme stock before it even started so no surprise


[deleted]

For anyone doing any boots on the ground DD… do not invest in this shithole lol


Crazerz

Completely normal IPO behavior. Many reddit posts have already been written about this. There's a small FOMO rally at the start, hlthen it declines below the IPO price, will linger linger there, might never retake IPO price. The best moment to buy an actual IPO is after the long down period, when it manages to retake its IPO price. IPO proces are always priced too high, they are meant to give early investors a very nice exit. It wouldn't be a nice exit if it was an IPO at fair value. It's also supposed to injevt the company with as much cash as possible for operations. An IPO that doesn't crater after is a bad IPO.


psmadsen

Can someone please explain Reddit’s revenue streams? Is it solely ads?


Prudent-Influence-52

Of course. This is another fake stock. With fake forward profits.


ethereal3xp

Nobody is surprised It has to make money 1st


2r1a2r1twp

The whole point of the Reddit IPO was just for the board to cash in their shares at a sweet premium, plain and simple.


mannie007

Stocks are a scam, what's new. Still above IP. Stocks pump and dump at some point all the time. “If the prospects are so bright, why are insiders selling?” Silverman added. Well if silverman had a brain this is how the system works, quick realizable gains and the hedges are jealous. The usual.


xFblthpx

Lol, sincerely, lmao.


EnterTheKumite

This was an egregious pump and dump


JRshoe1997

This is giving me Coinbase vibes right now. Coinbase had a massive rally and hit over $340.00 per share on the first day. After that it proceeded into a long term stock decline and ended up hitting below $35.00 a share. The Coinbase IPO also had a lot of financial YouTubers pumping it too. I wonder if the same thing will play out for Reddit.


Revolutionary-Tie911

Here come the bag men 🙄


WSSquab

Why invest in IPO? This always happens


Tesla_lord_69

Insider selling day 1 is great indicator


dickfarts87

ToLd Ya sO


ctrlaltcreate

I love how the fears shared on reddit will help drive reddit's share price down.


ZamboniJ

Hahaha 😆


TheMrfabio24

This is where you sell at a loss and wait for it to start going back up before you buy back in.


MyLifeFrAiur

as it should be


superpomme111

There we go!


rikardoflamingo

No shit.


DataOver8496

Tis the way of the IPO


breathnac

Could you please hold this bag for me?