Select date

May 2024
Mon Tue Wed Thu Fri Sat Sun

Reddit rally FOMO

22-3-2024 < Attack the System 14 242 words
 
Reddit finally went public with a sharp rally. Detractors are probably kicking themselves. 

Reddit stock surged yesterday in its highly anticipated public-trading debut. Shortly after trading began, the stock climbed as much as 70% to $57.80 — more than $20 than it was originally priced in its Wednesday IPO. It closed the day up roughly 50%.



And the rally may have some would-be investors kicking themselves.



Ahead of Reddit’s IPO, the company announced it would allocate 8% of shares to a group of retail investors, including top users and moderators on the platform.



The problem? Lots of Redditors weren’t interested, with some dismissing the opportunity outright, Business Insider’s Phil Rosen writes.



The Wall Street Journal initially reported that 75,000 users were invited to partake. But some questioned why the company would even consider going public, as it lost $90.8 million last year. (To be fair, Reddit did see revenue climb 20% compared to the prior year.)



The first-day pop saw some investors become very, very rich. Advance Magazine Publishers, which owns Condé Nast, looks to have about $2 billion in shares. Sam Altman and his various affiliates are looking at a $571.5 million payday, according to BI’s Samantha Stokes, Rebecca Torrence, and Vishal Persaud.



Now, some Redditors are feeling regretful.



“Those of you that got in and sold at the open, wish I was there with you,” one user wrote.

Print