Wait, they're leaving their users holding the bag? Who could have predicted this
this post was submitted on 28 Mar 2024
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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?
They tried to pump up by selling to reddit users first. On a platform that literally has communities dedicated to fucking up stock prices.
Unfortunately, they somewhat succeeded. Greedy little pigboy got his $16m dump, right after using the Reddit users to pump.
Greedy little pigboy was always going to get his cut, that was the whole idea. Build something juust big enough to get bought out, and if that doesn't work, sell the parts as unethically as possible.
I look forward to him thinking he's a big dick player now and getting absolutely chummed by the real sharks
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.
So they don't care about the company or this is so normal that they'll continue as they have been and no one thinks it's anything?
They hopefully would plan on continuing as normal even if they expect the company to tank. Otherwise it would be an obvious insider trading violation I think. Of course CEO is a bit of a fanboy of Musk, who regularly committed securities-related crimes and is always under SEC investigation for the crimes he repeatedly commits, but probably still makes more money off the crimes than the penalties...
How in heck is Truth Social worth more than twice Reddit
Because the stock market is mostly based on mob thinking/human psychology rather than being based on reality.
Not mostly, but people are buying Truth Social shares not because they think it's a sound financial decision, but because they support the company. It's meme stock logic.
That's basically what I meant with mob thinking.
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.
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