Reddit's debut will mark the first major tech initial public offering of the year and the first social media IPO since Pinterest went public in 2019.

Social media company Reddit filed its IPO prospectus with the Securities and Exchange Commission on Thursday after a yearslong run-up. The company plans to trade on the New York Stock Exchange under the ticker symbol “RDDT.”

Reddit said it had $804 million in annual sales for 2023, up 20% from the $666.7 million it brought in the previous year, according to the filing.

The company said it has incurred net losses since its inception. It reported a net loss of $90.8 million for the year ended Dec. 31, 2023, compared to a net loss of $158.6 million the year prior.

Its market debut, expected in March, will mark the first major tech initial public offering of the year. It’s the first social media IPO since Pinterest went public in 2019.

Reddit first filed a confidential draft of its public offering prospectus with the Securities and Exchange Commission in December 2021.

  • Chef@sh.itjust.works
    1078·
    9 months ago

    I will short the ever-loving shit out of that stock. This is a no brainer.

    It’s a TERRIBLE investment. The business model is completely flawed and dependent upon assumptions that there will be only positive growth in the user base.

    Google is going to use Reddit to train its AI. That software is going to immediately become a smug, whiny, racist, pedophile femboy.

    I look forward to capitalizing on this completely predictable sunbaked diaper.

    • Billiam@lemmy.world
      521·
      9 months ago

      Except the stock market (and all the cultists who worship it) don’t inhabit the same reality as the rest of us.

      It doesn’t matter if Reddit is a good investment or not- what matters is if Reddit feels like a good investment to those assholes. The market can remain irrational a lot longer than you can remain solvent.

    • SuperDuper@lemmy.world
      431·
      9 months ago

      It’s a TERRIBLE investment.

      “We are not profitable”

      -Spez, certified jailbait aficionado

    • BaldProphet@kbin.social
      211·
      9 months ago

      I’ve never shorted stock before, but I’m really tempted to start now. RDDT will become the inverse meme stock.

      • FiskFisk33
        41·
        9 months ago

        read up carefully. It is a strategy that can lose you more than you put in.

        • mosiacmango@lemm.ee
          121·
          9 months ago

          Better than a true “short” is to buy a put option on the stock for 100 shares. You buy a contract that lets you buy someone else shares at a lower price. If youre sure the stock is going to decrease, you pay a minor amount to make more money when it does.

          You can then opt to exercise this and get cheap shares, or more likely, sell the put contract directly for profit.

          You can also sell a call option that says you will provide 100 shares at a higher price. If you think the stock is going down, you will never have to actually fulfill this, so the money you made from selling the call is pure profit.

          The positive with options is that they limit your losses if youre wrong, unlike shorting where technically your losses can be unlimited. Options are also easier to get into than shorts, which generally require specific brokers that have minimum account size.

          The negative is that options are time limited. They last only a certain amount of time you specify when you buy. You can be 100% right about how the market will move, but if you get the timing wrong, you still lose money

          • BaldProphet@kbin.social
            11·
            9 months ago

            I think this is what I had in mind when I said I would consider shorting RDDT. Gonna watch and see what happens with the IPO first, though.

      • TheOneCurly@lemm.eeEnglish
        17·
        9 months ago

        Shorting an IPO isn’t really available to most investors. Liquidity is super low and most brokerages won’t be able to offer it for a while.

        • ryathal@sh.itjust.works
          2·
          8 months ago

          It’s also pretty common in the short term for a stock to ipo and be trading below the ipo price for a few months, so there’s lots of demand for shorts.

      • JDubbleu@programming.dev
        8·
        9 months ago

        On top of what others have said keep in mind shorting isn’t just you saying the stock will go down, it’s you saying the stock will go down more than others think it will. Tbh I wouldn’t even touch anything to do with shorting or options if I were you. It’s incredibly risky and should only be done by people with more experience than you and I.

        • SoleInvictus@lemmy.world
          2·
          9 months ago

          Absolutely correct. I played around with options several times during the height of the pandemic and lost over 99% of my investment. I think it was about 99.3%. It’s straight up gambling.

          Shorting a stock can result in you owing more than you’ve already spent. That’s back alley gambling.

          Keep in mind there are literally thousands of Redditors who have the same idea.

    • queerly_hot@kbin.social
      1829·
      9 months ago

      pedophile femboy

      you don’t need to continue this bigoted line against queer people, intentional or not.

      • LufyCZ@lemmy.world
        346·
        9 months ago

        Are you actually serious?

        If you read the whole thing, it’s clearly supposed to be a mashup of different aspects of reddit.

        • Chef@sh.itjust.works
          39·
          9 months ago

          I’m the original commenter.

          While you found my intention to be pretty clear, I can also understand the responder’s concern.

          I’ve never had to live my life being called a pedo because of my sexual or gender identity. It must be exhausting to have to constantly defend yourself against those awful accusations.

          I can empathize with someone seeing those two words together and getting upset.

              • Rentlar@lemmy.ca
                6·
                9 months ago

                Sometimes it’s better to do it that way, to address a powderkeg comment downthread than directly respond to it.

              • j_roby@slrpnk.netEnglish
                5·
                9 months ago

                You’re not wrong, and maybe they should have initially responded to the person who called them out. But this whole conversation could’ve turned into a dumpster fire in a number of different ways.

                I believe the response given was absolutely worth commending. It showed compassion and maturity - things that are all too often lacking in internet discourse.

          • Miaou@jlai.lu
            23·
            9 months ago

            I cannot emphasise with a person too dim to understand context however

  • Mostly_Harmless@lemmy.world
    31·
    9 months ago

    Interesting. Today Reddit sent a new TOS letter to an old email address (I don’t have any Reddit accounts because fuck u/spez). The username it referenced was created today. I’ve never used this address with Reddit and don’t have any confirmation emails in my box or spam indicating someone else tried to create this account. I changed the password and deleted the account, but I have to wonder if they might be trying to boost their subscriber numbers for an IPO.

  • wise_pancake@lemmy.ca
    13·
    9 months ago

    Don’t you usually get to black before the IPO? We’re not really in growth stock rates these days.

    • Sarmyth@lemmy.world
      9·
      9 months ago

      There was another article today about them getting a contract from Google to train their AI on their content for millions a month. This should close the gap and lead to a possibly positive year for the first time ever this year.

      They saw a 20% increase in revenue, likely due to consolidating people on their app, getting them the ad revenue boost. That impact is only a little over 6 months old. I’m curious what a year looks like.

      • waratchess@lemm.ee
        9·
        9 months ago

        The article I read said that Google will be paying 60 million dollars per year, so that still leaves them 30 million in the red considering the 90 million net loss of 2023.

        • Sarmyth@lemmy.world
          3·
          9 months ago

          If the 20% revenue boost was a result of the api changes, the difference may be made the difference of 6 vs 12 months of the increase. Also, other LLM data buyers may become customers now that they know it’s for sale and the approximate cost.

        • wise_pancake@lemmy.ca
          2·
          9 months ago

          That’s actually not so bad, I still think they could have gotten more with that Google deal, at least 5x what they got, but it subs like Google is going to be boosting their traffic too which will likely be a benefit.

    • Jaytreeman@kbin.social
      4·
      9 months ago

      The vast majority of companies arent profitable with their IPO. This is a relatively recent phenomenon.
      The total IPO/year has tanked too.
      All I’m getting at is that overall trends no longer apply as business and how stocks are approached has changed a lot

  • Steve
    10·
    9 months ago

    I got the “do you want to hold the bag” email.

    • SuperDuper@lemmy.world
      14·
      9 months ago

      Spez is straight up luring the userbase into a rug pull scam.

      Plenty of rubes will fall for it and the stock will be overvalued for a short period of time, then the institutional investors will pull out, then the rubes will panic sell, then institutional investors will slowly buy back in a little bit and it’ll eventually reach some kind of baseline but never get back to where the redditors bought in at.

      I just hope I can get some good puts in before the rug pull happens.

    • AbidanYre@lemmy.worldEnglish
      4·
      9 months ago

      IIRC Vonage tried that too, because the folks in charge knew the IPO was going to fail spectacularly and wanted more rubes to put in some money.