Technology

59174 readers

2062 users here now

This is a most excellent place for technology news and articles.

Our Rules

Follow the lemmy.world rules.
Only tech related content.
Be excellent to each another!
Mod approved content bots can post up to 10 articles per day.
Threads asking for personal tech support may be deleted.
Politics threads may be removed.
No memes allowed as posts, OK to post as comments.
Only approved bots from the list below, to ask if your bot can be added please contact us.
Check for duplicates before posting, duplicates may be removed

Approved Bots

founded 1 year ago

MODERATORS

399

Reddit power users balk at chance to participate in IPO as Wall Street debut nears (www.cnbc.com)

submitted 7 months ago by return2ozma@lemmy.world to c/technology@lemmy.world

114 comments fedilink hide all child comments

you are viewing a single comment's thread
view the rest of the comments

[–] ccunning@lemmy.world 41 points 7 months ago (2 children)

I initially thought I might participate in the IPO. I’m still not over what /u/spez did last year but I justified it the same way I ever bet AGAINST my favorite sports teams. That way if they lose there would is still an upside. I don’t think Reddit will be a great investment. But if they are, hey, at least there’s some money in my pocket.

This would have been my first IPO. And what made me finally decide against participating was the recognition that buying into an IPO, unlike regular stock trading, is actually putting money directly into the company’s pockets.

Fuck that; fuck them; and especially fuck /u/spez.

[–] GregorGizeh@lemmy.zip 39 points 7 months ago (1 children)

I read a pretty brutal analysis by a financial expert on some business magazine site. My biggest takeaways were:

new shares get 1 vote per share, existing shareholders 10 per share
under the rules they are doing the ipo they can skip providing solid numbers for the last years, and are unbound by board opinion on how much money can go into executive compensation and golden parachute packages.

Now I’m not an investor at all but this rings so many grift alarm bells I don’t understand why anyone would buy that shit. Seems like a completely dubious investment set up to pay out spez and then collapse.

[–] kamenlady@lemmy.world 8 points 7 months ago* (last edited 7 months ago)

Seems like a completely dubious investment set up to pay out spez and then collapse.

Are they trying to hide this intention?

[–] treadful@lemmy.zip 9 points 7 months ago

I like dabbling in IPOs (read: gambling). IPOs are almost always a bad call for regular investors. The value almost never goes up immediately after sale unless the company somehow all of a sudden has demand from a ton of investors of all sizes. And a company that can't turn a profit isn't likely to be that.

So, if you do want to buy in because you see them doing good in the long run, maybe wait a month for the price to settle, then get in.