Reddit Insiders Selling Days After IPO; Shares Fall
Reddit Insiders Selling Days After IPO; Shares Fall
CEO Steve Huffman and others disclosed sales days after the IPO.
Wait, they're leaving their users holding the bag? Who could have predicted this
im not sure i feel bad for the users who bought into this obvious grift
It's still up over 40% from the opening price. Anyone who bought into this got a nice payday.
Pump and dump. They sold all those shares to shareholders and they are going to answer to them now. They stopped listening to the users a long time ago. Enshittification is inevitable.
It's already fairly enshittified. The discourse has really gone downhill over the past few years. Remember how good the AMAs used to be? Or the AskReddit threads that were full of interesting stories?
I don't remember names, but many users around here called this to the letter
Anyone with half a brain would have expected this. Fuck u/Spez.
They’re getting the payday they promised themselves and they are doing it now because the share price will probably never be this high again.
If Spez was paid $93 million last year and all but $600k of it were shares, you can bet he still has plenty left.
Does this mean that they don't believe in reddit or is this normal? I really don't know personally.
Reddit CEO Steve Huffman sold 500,000 shares on Monday at an average $32.30 price, receiving $16.15 million. CFO Vollero Andrew sold 71,765 Reddit shares for $2.318 million. Chief Operating Officer Jennifer Wong sold 514,000 shares for $16.602 million.
Chief Technology Officer Christopher Slowe sold 185,000 shares for $5.975 million. Chief Accounting Officer Michelle Reynolds sold 3,033 RDDT shares for $97,966. Board member David Habiger sold 3,000 shares for $102,000.
Does this mean that they don’t believe in reddit or is this normal?
It's pretty normal I think. This is how economy works these days. Companies IPO to turn the shares into liquidity. It's all so that the greedy people at the top can get their payday.
How in heck is Truth Social worth more than twice Reddit
chat … is this actually real? fucking trump has more value?
So this is not normal for a company going public, or is it?
It is not. This is deeply unethical.
If a company takes its stock public, the shares sold generate cash which is held by the company selling them, and used to build the business. Nobody who bought them, including the insiders, is really forbidden from selling them (except insofar as insider trading laws apply), but if an insider sells shares this early it indicates a deep distrust by the seller of the underlying value of their own company. Doing so while letting outside investors spin is therefore unethical because it signals that the people who built the company are planning to abandon it and let the stock tank.
See also: lock-up period, which is not required during an IPO (news to me!) but the absence of a lock-up period sure seems like a red flag someone should have noticed. Although, I suppose, many people did.
This is normal when a company goes public and is overvalued. It's precisely what you expect the insiders to do.
I remember reading somebody saying they were going to buy it and put a sell order for when it hit 69. Just looked and too bad for them. It seems to have maxed out at 68 dollars.
I’m seeing it hit 73.47 Tuesday morning
You are correct, I looked at the month long view and I guess it was there for such a short time that it didn't register on the longer timeline.
Maybe that's why that backed out at 68 they wanted the last laugh
HAHHAHAHAHAHA! GET FUCKED u/spez
He's probably one of the ones that made bank selling, unfortunately.
Not probably. He dumped 500k shares already for $16m.
I kinda expected it to be another Lyft stock comedy. Idk why.
i hope shares plunge to the ground so that people feel or have to switch to something new but kinda similar, like lemmy
Maybe we could all just start buying shares for no reason. At some point the community will get bored and the stock will tank
This only works to fuck short sellers, not people who already have shares. If you buy shares right now, you're not only screwing yourself while the other bag-holders minimize their losses by selling, but keeping the stock overvalued until greedy little pigboy can dump the rest of his stocks.
Lets do it again! I still have savings to lose...To the moon!