There are plenty of rubes that have heard of reddit, unlike a lot of other IPOs. They will offer at an insane premium that the general public will buy into, then it will crash once the restricted period ends.
I’m not a finance guy, so I really have no idea. But my gut tells me that if Fidelity values Reddit at $5 billion, other financial institutions probably peg it around the same amount. And the recent press around Reddit that people might have heard about is decidedly negative, so I don’t know who would think it’s worth that much. Also not to forget, lots of people knew about Facebook and it’s stock didn’t trade above it’s IPO price until a year after it opened.
But again, I could be totally wrong. As H. L. Mencken wrote, “No one in this world, so far as I know … has ever lost money by underestimating the intelligence of the great masses of the plain people.”
it’s almost like not listening to your users doesn’t end well
4.5 billion still sounds well to me…
A fifty percent drop isn’t a good sign
wee bit worse than 10b
not if that’s the amount you lost
Rumor has it that Reddit wants to IPO at $15 billion. Hard to do that when you were worth $10 last year and are worth $4.5 this year.
There are plenty of rubes that have heard of reddit, unlike a lot of other IPOs. They will offer at an insane premium that the general public will buy into, then it will crash once the restricted period ends.
I’m not a finance guy, so I really have no idea. But my gut tells me that if Fidelity values Reddit at $5 billion, other financial institutions probably peg it around the same amount. And the recent press around Reddit that people might have heard about is decidedly negative, so I don’t know who would think it’s worth that much. Also not to forget, lots of people knew about Facebook and it’s stock didn’t trade above it’s IPO price until a year after it opened.
But again, I could be totally wrong. As H. L. Mencken wrote, “No one in this world, so far as I know … has ever lost money by underestimating the intelligence of the great masses of the plain people.”
This happened before the current kerfluffle.