I haven't seen this posted yet. All of reddit's C-levels sold $41.245 million worth of stock in the first week of trading.
I haven't seen this posted yet. All of reddit's C-levels sold $41.245 million worth of stock in the first week of trading.
CEO Steve Huffman and others disclosed sales days after the IPO.
If that's not the textbook image of rats leaving a sinking ship, I don't know what is. "Fuck you. Got mine!"
The price pump that conveniently happened immediately after release sure was nice for Pig Boy Huffman, wasn't it.
Data on short positions become available tomorrow (April 9th) as referenced in this article so the roller coaster is only just getting started. It's gonna get wild once the market realizes what a house of cards Reddit is built on.
Isn't this normal for tech companies? The IPO is typically the pay day event for most employees paid in stock where you can finally cash in. Doesn't matter where you think the companies going, most people would rather buy a house then stay on the tech stock roller coaster.
Usually they are barred from selling immediately following an IPO because it looks really bad and can trigger a price drop with everyone selling all at once
https://www.investopedia.com/ask/answer/12/ipo-lockup-period.asp
They are selling a small amount and keeping the rest. I have no great love for Reddit, but it's normal and smart.
$40m isn’t that much for a company with a valuation of Reddits.
Not really any conspiracy here
It is when you consider that it was roughly 80% of the stock they held.
Is there a source for that? Don’t get me wrong, I think reddit is over valued as an unprofitable company but the 80% number smells wrong.
According to the article he sold 500k shares but according the S-1 he was granted 662,447 as a bonus for achieving above a 5B market cap (he did, it was a low target), that’s on top of the 4.6M shares he holds in mixed class A/B.
For someone paid so much in stock it’s not uncommon to want to gain some liquidity and lock in some earnings.
https://www.sec.gov/Archives/edgar/data/1713445/000162828024006294/reddits-1q423.htm
This figure doesn't really pass the smell test, given that it's been repeated to death that the CEO makes $193 million, with the vast majority being stocks. Can you source the claim?
Their market cap today is something like $7.5bn?
$40m would be like 0.5%
This is not news as much as we all want it to be, they definitely have much more than that, even if it's tied up in an RSU scheme or something.
So what do you do when you have stock in a private company while still working at it. I imagine if you are heavily compensated with equity you will take going public as an opportunity to offload and diversity.
They're just being capitalists. Having 80% of your portfolio in a single entity isn't smart.
I don't think they're saying they did it for price manipulation, I think they're saying they ditched the shares because they thought the price would tank
How the fuck was there not a lock-up period? Clearly this was planned.
I agree that this is a bit odd.
Greedy little *pedo pig boy
/r/jailbait wasn't allowed to exist untouched for 7 years for no reason.
I dislike reddit as much as the next scorned ex-redditor, but I can't really blame them here, regardless of what state reddit is in. if things are going downhill, obviously selling while they can makes sense. And if things are looking good, why not sell now anyway and have some actual money to spend, rather than just holding onto the Monopoly money in case it's worth more later? It's still more than enough money for them to be able to live comfortably for the rest of their lives.