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.”
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.”