“Earlier this week, Reddit disclosed in a corporate filing that CEO Steve Hoffman sold 500,000 shares, and Reddit COO Jennifer Wong also disclosed that she sold 514,000 shares.”
If they believed in the platform, they would hold. Yeah looks like they are looking for bag holders.
I think it matters more what percent of their holdings they sell rather than the amount they sell.
The COO holds 1.4 million now, so she dumped 25% of her shares
To be fair (and you can probably see by my username I don’t like reddit anymore), I think it makes perfect sense to dispose of a fair portion of your shares in this situation. Firstly, these asshats get paid part of their salary in shares, it’s natural to want to get more security on part of your income. Secondly, with how hard the price rose in the first couple of days, it makes sense. But people are welcome to disagree, of course.
How does that respond to the original idea, that is:
if they believed in the company, they would hold their stock.
You are not a genius for selling your company’s stock after IPO, you are a grifter. Doesn’t matter how many voting shares they have, doesn’t matter how much more money they need - they do get paid in cash too, and they can borrow against the stock.
So they sold out. Fuck them both for that.
if they believed in the company, they would hold their stock.
The COO holds 1.4 million now, so she dumped 25% of her shares
Selling quarter of your stock AT THE FUCKING IPO is a shame. I can’t believe people are defending that.
And I suspect they can’t sell the rest as easily as the A shares.
I have nothing I’m willing to defend about Reddit management, I love the idea that they will end up penniless one day (though I’m sure that will not happen.)
I just don’t think selling off 25% of one’s shares (necessarily) means what has been suggested.
That’s SOP for tech companies.
I don’t know how much of a bag holding exercise it is instead of a “treat yoself” moment. Half a million shares at $50/share is $25 mil, minus 50% taxes is $12.5 mil.
That isn’t that much money in the bay area. Don’t get me wrong. It’s a lot. But that’s just a $4 million house with another $1 million in furnishings, and I’m guessing a nice car or two. Take the other $6 mil and invest in a diverse portfolio. They’ve basically sold their stock so they can square away their personal lives.
We all knew this was a pump and dump scheme. Spez got his, fuck everyone else.
Reddit has a market cap of $7.8 Billion right now.
Truth Social had a market cap of $8.4 Billion.
This is the first I’ve heard of whatever truth social is
It has 1/100th of the users of Reddit and it’s just a Twitter clone but it’s meme stocking because Trump is on there. Obviously the company isn’t actually worth billions but it’s a fun comparison.
It’s a mastodon clone. They literally tried to rip it off and got their hands slapped.
Nothing’s real 😅😓
Capitalism is literally a pyramid scam.
Why do people keep misrepresenting capitalism as some silly boogie man? This is just as stupid as people claiming socialism is innately bad.
Because people don’t understand what the word means. They just want upvotes for saying capitalism is bad.
At least truth social is open source
As open source as Reddit? Meaning, original software was but is it currently?
It’s built on mastodon. They got slapped for not linking their source. Not sure if that ever got resolved.
It’s all just rigged gambling. That money won’t benefit the company at all. The investors just sold all their stocks to the hedge funds and retirement funds for them to lose money on, like always. The IPO was just a way to pay off investors and let executives cash in their stocks. I’d love to know what restrictions on selling came with the stocks that were given to regular employees and users/mods. Like are they allowed to sell right away or do they have to hold it for some period of time?
But about as democratic as can be. No one was forced to buy Reddit. Benefit or not to the company, the company was essentially sold. The new owners of their very own choice will want a return. A big return to essentially cover 8 billion they just paid for it.
Reddit will need tens of billions in revenue to make the profits those new owners will demand. It is that drive to justify the cost that will make it another shitty bloated ad platform.
But that’s not really how the stock market works anymore. Now investors don’t buy stock to support a company and draw a portion of the profits. That version of the market hasn’t existed for a while.
Now, the market is used as a gambling platform for wealthy people and is kept afloat only by IRA, 401k, charitable trusts, etc. Basically, a company is having trouble with profit. You buy into the company, put in a CEO you can control, have them boost the price at the expense of employees, customers, and long-term profit. Sell the stock. Let the company fall apart.
Then buy it low, have the CEO make up a new product based on whatever tech fad is popular. Sell just before the money is spent. Let the project fail because all the money was spent on marketing and consultants and not on the employees to actually do the project. Buy up the stock again, do some stock buybacks, sell again, etc.
But it’s never a strategy of: hire really good employees, make them happy, give them an achievable project with enough funding, increase the company’s reputation by making quality products, etc. That requires actually good business plans and products and a lot of work and no short term, “hey look at how much money I saved by cutting budgets even though everyone said our products will be crap without it,” kinds of flashy quarterly reports.
Playing the gambling game is more reliable profit and with retirement funds and all that keeping serious market crashes from happening, and the politicians being on their side and willing to bail them out if it does get bad, there’s a lot of wiggle room and a lot of people to lose money and funnel to them that doesn’t affect the corporations.
I want Elon Musk to buy Reddit. 😈
Elon: “Now that I’ve purchased reddit, we’re going to rename it x.”
Person with an ounce of common sense: "But you already changed twitter’s name to that.
Elon: “Don’t be stupid. I named it X, whereas reddit is going to be x. It’s going to be a totally different brand.”
Oh no it would be stupider than that. He would merge Twitter and Reddit as part of his “everything app” which is what he actually wants “X” to be and why he’s doing things like trying to turn Twitter into a bank.
Stock Market Capitalism is just imaginary numbers made up by rich people to convince other rich people to give them money. It’s completely ephemeral.
The fact that it can rise or fall with nothing more than a silly antic from one person is proof about how insubstantial and frankly ridiculous the whole scheme is.
Ya love to see it
Whomp whomp
That spezial mod of r/jailbait already cashed out his shares for something like 16 million so he got his… I doubt he cares what happens now.
I’m doing my part!
