Reddit users do not want to buy shares on this site

Reddit has announced that it will go public next month below paper RDDT. And on Wednesday, it announced a $60 million-a-year deal with Google to license its content for AI training.

It has something unusual: the ability for those in charge to buy shares. The idea of ​​a group of Reddit users is a common risk for change that they mentioned in their IPO documents. (lol)

The problem is more than a joke. The company must be notified in the public offering prospectus (IPO) that this will cause the price to change. He even warned about the risk of making a meme because of his members in the forum, the redditorswith “extreme volatility.”

This is how the company’s representative, Steve Huffman, explained: “We hope that the IPO will also bring significant benefits to our society. Our users have a deep understanding of ownership of the community they create on Reddit. That sense of ownership often extends to everyone on Reddit,” he said.

Then, in the risk section, the analysis of the effect that this decision can have on the share price is not pretty, according to the newspaper. Five days: “Participation of redditors in this request can lead to an increase in the price of our shares,” he warned.

What is the danger of this great idea?

Are Reddit’s most active users willing to buy Reddit stock? We cannot forget the destructive potential of these large meetings that bring together many small investors who have the potential to change, if they agree, the difference between products. So let’s see.

r/WallStreetBets is un subreddit (forum on Reddit) with 15 million subscribers dedicated to discussions and memes, best known for the 2021 GameStop stock craze. The reaction is… great, you might say.

“Can someone tell me a short IPO?” a user on r/WallStreetBets posted about Thursday’s announcement.

Another user, a moderator with a Karma score of more than 300,000, posted a screenshot of a message he received from Reddit about being part of the Project, wondering if that he should invest.

“Hardly,” someone answered.

“The question is: where should we eat when we talk about shit?” consider others.

“Only if you want to sell it to me next week,” replied the other.

On r/stocks, sentiment seems weak.

“Sell it short until they take it off the market.”

“Short selling.”

“So we can pre-register to get a share… Can we pre-register for a short?”

“This is a septic tank full of the dumbest monkeys, run by hackers Hate incompetence with lust for power. Easy to make money. ”

Of course, a small sample of young people who are able to report about the product is not a good guide for the future. (For the love of God, don’t use this for any advice.)

And complaining about the social network you’re posting on is one of the most important tasks for people who rely on social media. As for what this means for Reddit’s IPO, who knows? But now… the result is unbelievable.

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