According to the Wall Street Journal, thousands of Reddit’s most avid users will have a chance to pick up shares when the company goes public in 2024. report Wednesday.
Citing people familiar with the matter, the Journal reported that 75,000 of its “most prolific” Redditors will have the opportunity to buy “a yet-to-be-determined number of shares” before trading begins.
The Journal notes that this privilege is “usually” limited to “large investors” who stand to make huge profits if Reddit’s stock price rises dramatically after it begins listing on the New York Stock Exchange (NYSE). He pointed out that the company is scheduled to go public in March of this year. .
Of course, if the stock price suddenly plummets, Redditors could experience the opposite and lose their investments. This could further infuriate Reddit users who are currently protesting the company’s changes, or buy Reddit shares early and sell them before they can reap the benefits.
Individual investors appear to be more likely to “sell at the first sign of weakness,” which is one reason why banks generally prefer selling to “large asset managers,” the Journal said. did.
Many longtime Redditors who would be interested in this offer are more interested in Reddit’s new stock than the Journal reported that the majority of new listings are priced below their listing price and struggle to find buyers. You may be wondering what the odds are that an IPO will go well. It’s still too early to tell, but Reddit made some moves that could give it some confidence before announcing its IPO.
reddit announced The IPO took place in December 2021, nine months after Drew Volero joined the company as chief financial officer. Reddit noted in a blog post that Vollero had previously guided Snap through an IPO as a public company, and CNBC revealed that. report The company ended a “long drought in the tech IPO market” after its stock closed its first day of trading with a 44% jump. TechCrunch report Within two years, Snap became the “laughing stock” of the New York Stock Exchange and “sunk to an all-time low” in December 2018, but the company eventually bounced back by finding new ways to attract users. .
It’s a snap stock recently According to Fast Company, the company started to plummet again due to profit losses and layoffs, but by the time Borrero left Snap, the company’s stock was on track to hit a new all-time high in September 2021. It is said that report.
As Vollero considers an initial public offering in 2021, Reddit is likely attracted to Vollero’s track record. The company also appears encouraged by the platform’s positive trends, backed by its decision to go public after the WallStreetBets forum gained millions of new users and advertisers. WSJ report.
Reddit declined Ars’ request for comment, but has long made clear that it wants to encourage users to become shareholders. According to Reddit’s blog, the plan from the beginning has been to “make Reddit stock offerings more accessible to retail investors,” with the possibility that users could someday own a piece of Reddit in 2021. It suggested that there was a sex. And at a tech conference that year, Reddit CEO Steve Huffman directly stated that the company wanted to make it easy for users to become shareholders.
“I want users to become shareholders, and I want shareholders to become users,” Huffman said. reportedly Said.
Huffman said Reddit is facilitating change by inviting users to become shareholders, as “markets have evolved to be more fair” and accessible to individual traders who buy and sell stocks through platforms like Robinhood. He said he saw an opportunity to do so.
