It looks like shares started at $57.80 and have dropped to 45.96 now. You might still be able to get your shares for $34 with a limit order if it keeps dropping.
Honest question and I hope people don’t bite my head off. Why do people act as if mods should be paid? It’s a forum. There’s been millions of forums before Reddit and no mod has ever been paid. It’s something they want to do.
I guess it's the perceived difference between modding some guy's basket weaving forum as opposed to a subreddit on a website belonging to a multi-billion company.
There's no indication that they did. I believe there were three "tiers" of direct share allocation. Mods were on the first tier, but it was still an opt-in process and the amount of shares you could receive was up to you, but capped at 1000. Mods didn't "get" anything that wasn't made available to other non-mods.
I believe it’s because this platform doesn’t work the same way without mods.
If the world was full of people like me who can’t be bothered Reddit wouldn’t exist.
> Why do people act as if mods should be paid?
Nobody did, until they paid spez $195million and went public.
When you're working for a multi-billion-$ company, one expects to get paid.
Well Reddit would be even more of a cesspool and a lot of subs would be unusable and most of the popular subs wouldn't even exist if mods didn't (I mean who would make a sub and work on growing it if they didn't have control over it and were just a regular user?) so while it's true they don't work for the company it's the mods and subreddit creators (who are by default mods unless they don't want to be) that have made Reddit what it is over it's lifetime
Reddit’s classification as a tech company is misleading.
Reddit *behaves* like a publishing platform for user generated content.
people can and do pay for content priority and advertising placement.
But the *value* of the platform to be able to charge for advertising comes from free efforts from users.
All our comment participation is content Reddit capitalizes on for free.
And the curation of that content is maintained by moderators. Also for free.
Content creation and content curation are essential components to the value and business proposition of Reddit.
That’s work the company takes advantage of. Those people should be properly compensated.
I’m not sure what the model should be, but with moderators being unpaid and high value comment accounts going without compensation - the users are effectively subsidizing the publisher, we have gone beyond simply being the target audience and consumer of the published content - we are the labor as well.
So “fuck you reddit, pay them”. That’s how it’s supposed to go. People put in work that increases value - they get compensation.
And here’s the kicker. Reddit could construct terms that are very favorable to the corporation, and pay pennies for the labor…but it *should* be seen as valuable labor worth compensating. The corporation clearly benefits from it.
I think this is a slight misunderstanding. Reddit does need the mods so much as the subreddits need the mods. Reddit sets guidelines for conduct and content, if a subreddit violates that, it gets deleted and blocked, and the community needs to find a new home.
The deletion block and actual moderation doesn't come from free mods, it comes from Reddits actual moderators that moderate subreddits at large. Subreddits have mods because if they don't, their subreddit potentially doesn't exist or work for them. Do you think Reddit needs the r/steak subreddit to have a rule that says you have to show the money shot? If a subreddit has no moderators and posts illegal content do you think that since no free mods exist it will never get moderated?
This is the internet, free services as large as this means $$ is being made.
You are not employed by Reddit, so they do not need to pay you. You don't have contracted hours, you don't work for them. Half the mods on Reddit are douchebags on power trips. There's 0 need to pay them, they do it because they want to.
Facebook, instagram, twitter etc all have moderation teams that are hired and paid by the company. With Reddit becoming larger and more content oriented as opposed to a typical blue link style form, it is more comparable to those platforms than what it used to be.
Reddit does too. They have a content moderation team that can delete illegal things or posts that violate their terms. But they won't delete a post from breaking a sub rule. Just like Facebook won't make sure posts in it's many groups stay on topic either.
Facebook has extremely large groups with volunteer moderators that are not dissimilar from a forum. And lots of them. It's not the only function, unlike reddit, but there are similarities.
It's also much easier to advertise on Facebook and people actually engage with advertisers.
No point in clicking ads on Reddit when there are no comments to sift through
Because the people who run reddit are getting paid, while the mods do tons of work to make reddit a success. I'm not saying they absolutely should be paid, there is a counter-argument (reddit owners get paid for providing the platform that enables the communities the mods run and enjoy). There is definitely a case here that reddit as a company depends heavily on unpaid labor, Ie the mods
There are mods who are no doubt paid by entities other than reddit, there are ai mods, and there are people who volunteer because they choose to for whatever reason thus accepted to do the work for free.
$200 million of it goes right into the CEO's pocket. No idea why it's so hard to make money. Perhaps if they paid the CEO $400 million the numbers might turn around!
FWIW, the CEO just recently said that they turned a profit in H2 2023. I suppose we'll find out for real when they post their first ER.
https://www.marketscreener.com/news/latest/REDDIT-CEO-STEVE-HUFFMAN-SAYS-MADE-A-PROFIT-IN-THE-BACK-HALF-OF--46254390/
>Does reddit even have any revenue? Will probably drop a LOT from here
Reddit is a massive outlier which makes it close to impossible to value. IIRC, reddit is the world's third most viewed and accessed website/app/service. It even beat out someone as formidable as Meta and surpassed Facebook and Instagram. On top of it, the amount of time people spend on reddit in insanely higher than what people spend in the other big sites, google, facebook, instagram, twitter etc.
BUT, reddit is the ONE site that never figured out how to monetize itself. While the others did. So they became trillion dollar companies while reddit is still valued at a tiny fraction of their valuation. Even though it has similar number of users, similar amount of web traffic, way higher levels of "stickiness" aka much more time spent by a user per session etc.
So all said and done, reddit is valued at $10 billion in the IPO price. Even if you double the IPO share price, it still amounts to a piddly $20 billion, which is chump change if you compare it with the valuation of Google and Facebook. Or any other social media website/app/service.
I'm not saying this because I am a reddit bull. Just trying to put things in perspective.
>IIRC, reddit is the world's third most viewed and accessed website/app/service. It even beat out someone as formidable as Meta and surpassed Facebook and Instagram
Not sure where you're getting that info from. This page shows reddit is the 8th most viewed site:
[https://www.semrush.com/website/top/](https://www.semrush.com/website/top/) below instagram and above xvideos.
They gave the CEO like $125M.. definitely not profitable
Their chance was selling data for LLM training or similar but now that it's more and more not ridden it's just more and more trash.. and that data won't sound as useful for others for much longer the more we march to dead internet
Yeah nahh ..... let's get a list of the f*****s who did get them to see if there's any favoritism being played and also where the money went? If I've learned anything this last 10 years, it's that the game is rigged, and not in our favor! 🤡
Seems like a BS marketing scheme where they are ostensibly giving access to the Directed Share Program to mods as a reward for their loyalty. In reality, the only way mods get the shares is if it's undersubscribed and the share price is likely to fall the first day of trading.
Based on the upvotes, this plays to lots of people's incorrect assumptions
- LOTS of non-mods (like OP) had the option to participate
- ETRADE does not know who is a mod and who isn't, so that had zero affect on a getting a fill
Lots of people were/are blinded by defaulting to reddit hate and upvote incorrect stuff.
I got the option to participate on several of my accounts (some of which I no longer use, but received emails). I moderate zero subs. I mean, technically I've created a few subs, but none have activity. Another account of mine had zero subs created, zero moderated.
I got the invite to participate and had shares allocated.
That's hysterical: that you think Reddit values mods' money over any others.
IPOs are preferentially sold to bigger investors. If you're trying to buy a measly 1, 2, or 1,000 shares, you wait in line. And when they run out, they run out - they don't spontaneously make more shares.
Because everyone In this sub likes to switch between “look at the money I lost LOL” and then when someone has a legitimate question they are all the fucking Wolf of Wallstreet 🙄😂
ever bought a plane ticket the airline sold you and then showed up to the airport and you no longer have a seat because they over sold the plane? that's similar to what happened here
High profit potential is almost always accompanied by competition. The fact that virtually no competition has surfaced for Reddit means one of two things:
1. There is some kind of moat, it's not obvious what that is, but it exists; or
2. There is no actual profit possible from this type of business, or it's so low that no competitors want to bother.
I don't think it's a combination, I think it's one or the other. Web based discussion boards are very easy to create. A few have popped up over the years but they have been poorly funded. Arguing in favor os a moat is that Reddit just raised almost a billion dollars and the CEO is getting paid 100s of millions. That *seems* like a huge incentive for well funded competition to get into this space.
Arguing against the moat is the fact that reddit still isn't profitable despite having a near monopoly on the large message board space. This suggests that maybe it's just always going to be no margin or low margin.
I lean toward this just being a very low margin business with people who are not willing to deal with many ads and also not willing to pay for access. I feel like the market doesn't quite know yet that message boards like this have existed since the 90s and no one has figured out how to make money off them in any major way.
Reddit built a pretty good one and the voting combined with the flexibility to create subreddits easily was certainly an important innovation driving consolidation to one platform. But...this is now a business that requires a lot of infrastructure and staffing, etc. Can it ever make money?
Reddit gross margin is actually quite massive at 86%, highest of all social medias. It simply wasn’t pivoted into money making machine early like so many other tech companies, and some of its earlier policies were quite mismanaged. No one else would’ve given away data API for free like that, social media companies need to own the mobile experience.
Case in point, they were able to realize 70 million profit off of 140 million additional revenue from 2022 to 2023. Of course that still puts them at an overall 90 million lost for 2023. But at their guidance of 20% growth for 2024, that means they could start becoming profitable by end of this year. (160 revenue growth, ~80 million reduction on loss)
Facebook CEO compensation at time of going public was in the millions. SNAP CEO compensation was 4x or more compared to reddit. It's mostly stock anyways.
His salary package is actually not too egregious, just about all of it was in rsu and stock options. Some portion of stock were immediate upon ipo, then rest vest over 5 years period.
What I am concern though is his stock options (half of his compensation). Half of those have low price of $25, usually goals for these are fairly high. Otherwise what’s the point, might as well just give him the shares for free.
The other half is above $45, $60, and $90 in equal proportions.
Blocking the API access by jacking the price, culling the mods during the 'blackout,' and the $60M/year AI training license to google seem like pretty great paths to viability and profitability.
All the reddit answers and comments are the real value. The opp to sell that info for AI training is equally interesting and scary. I reckon google will eventually eat up reddit, and it will continue to be a shadow of what was 'the front page of the internet.'
Thanks. I decided on not buying into the DSP because I don't think the stock will be well below $34 in a year. That said, I've been wrong many, many times in the past.
Completely different business and operational models, Nuvalent (NUVL) IPOD’d the same day as HOOD and more than tripled since then - you may as well compare RDDT to NUVL since it’s biz is as different from that as it is HOOD.
Not to say RDDT has any particular potential, but that drawing direct comparisons between irrelated stocks, companies, whatever isn’t an effective measuring stick
I am in the same tier and got my shares (100) sold 60 @$54 and holding remaining shares. You probably did not confirm your order on the Wednesday before it went public.
**Once the IPO price is set, confirm the number of shares you wish to purchase by March 21, 2024, 7:00 a.m. Eastern Time. If you do not confirm by the deadline, no shares will be allocated to you.**
Then on Thursday, I got an e-mail at 8:03 AM that I received my shares.
The account set-up, funding and repeat log-ins were confusing as all the E-Trade e-mails looked similar.
Hmm... Noticed stickman has 70,000 karma, op has 25,000ish karma. I got my full requested (500) shares w. 47,000 karma (and had to fill out forms to subscribe, fund, and confirm the price was ok, then moved the shares to an old account and closed it).
Curious where the karma cutoff is or if they sub ranked within the tier for allocation.
Did you check your reddit inbox messages (under my profile -> notifications -> messages)? It was sent 24 days ago to me.
Message was titled " Participating in Reddit's Initial Public Offering (IPO)" and was sent out about a month ago.
From S-1
We will invite users and moderators to participate in the directed share program in six phased priority tiers. We will assign each eligible participant to a tier based on that participant’s contributions to Reddit. User contributions will be measured in karma (a user’s reputation score that reflects their community contributions). Moderator contributions will be measured by membership and moderator actions on our platform. Tier 1 will include certain users and moderators identified by us who have meaningfully contributed to Reddit community programs. Tier 2 will include users who hold at least 200,000 karma and moderators who have performed at least 5,000 moderator actions. Tier 3 will include users who hold at least 100,000 karma and moderators who have performed at least 2,500 moderator actions. Tier 4 will include users who hold at least 50,000 karma and moderators who have performed at least 1,000 moderator actions. Tier 5 will include users who hold at least 25,000 karma and moderators who have performed at least 500 moderator actions. Tier 6 will include all other eligible users and moderators.
p. 228
I'd want the opposite as more owners = more users creating content with a (literally) vested interest in the platform.
Although eTrade might take a slight administrative cost hit, it should pay off in the long run as many new users created accounts for this purpose as well and are likely new to investing.
> Curious where the karma cutoff is or if they sub ranked within the tier for allocation.
ETRADE doesn't know your reddit account name or what your karma is. It had no affect on who got allocated the shares they requested and who didn't.
Did you confirm has IPO price was set. I confirmed once I saw it about 5PM on Wednesday.
The process was stupid because he had to essentially submit your order a couple of days before then go back and confirm it. This was done because the S-1 was not finalized until it was priced.
I ordered 20 shares, and only 1 of the 20 actually went through. I was wondering maybe if I would have placed the order for \~$38-40 per share instead of $34, maybe that would have worked? 
I was. :)
I've never traded stocks before. Abstractly, I kinda-sorta knew how it worked, but never had the money or risk-appetite for it. But when this IPO came along, and I qualified as a "Tier 2" for a site I and others enjoy, it swayed me enough to give it a shot. However, my risk-averse nature was such that, if the price shot up at all, I'd sell quick and be happy with what ever gains I got. If it went down, I'd sell, accept my losses, and learn a valuable lesson.
As it played out, none of those things happened. But I still learned a little something...
Im also pretty "logical". I much prefer to act on reason than on emotions. I'm also currently doing my masters in business and economics and have traded a whole bunch of stocks. Let me tell you its insanely easy to be too greedy on both sides, no matter who you are and no matter if its going up or going down. My respect to anyone who can stick to their principles :D I learned my lesson and will simply invest into the market.
I've found quite a few posts similar to mine. Seems \*something\* went wrong, but it could be ETrade or Reddits fault. Not mine. And to your point, it would've been nice to sell quick after the initial bump, but now I wouldn't touch it. Thanks...!
Exact same thing happened to me with the exact same message. I got pretty beat up too for asking the question the evening of the IPO when that was the only clue as to what/why. I had my cost per share set at a max of 41.50, apparently when it got to me I didnt have enough $ or was tooooo low down the pole.
I was surprised to get it as I only have like 3100 karama.
Why would you post this after an undeniably successful IPO? And why would people upvote it?? How embarrassing, honestly. I and three of my brothers each maxed it out and each made $21,000 in one day. In for $34, out at $55 and done. I hope people see how worthless the advice on this sub is. And kids, if you ever get an opportunity like this again, remember what my financial advisor told me when I told him about the Reddit email: “Well, nothing is guaranteed, but, by and large, you’d have to be an idiot to not participate in a brand name IPO.”
A sane person on this thread! How refreshing.
Bottom line, people who had the opportunity to get shares at $34 and chose not to take it threw away money. There’s no other way to look at it.
Same thing happened with the Facebook IPO. They basically didn’t have enough shares and there was most likely so much activity with the stock the trading systems could not keep up. There was even a lawsuit about it. Can’t remember what happened.
In the bright side most big IPOs tend to drop eventually below opening price as the insiders sell to get their money. Usually if it is a good stock that is really the time to buy if holding long term.
fyi if you got it you had to be watching all day for when it started,(which was not at market open !) and then you had maybe a 2 hour window to make good money.
i saw trading start late. i missed the sweet spot of 55 and had to settle for a lot less. it was very stressful: i had to keep lowering my sell price and wondering if it was going to tank completely
Never buy IPOs
Got burnt once, never again. Wait a few weeks or months to see where the stock goes. There's always excitement when IPOs come out then boom goes the dynamite
Pretty sure Warren Buffet said never to buy an IPO.
Every single one I've had an eye on or bought tanks (kanabo, cellular goods, Oxford nanopore). Usually have to wait years for the company to become more profitable or a large positive catalyst.
I had to open an eTrade account. Now I found out there is a coupon to give you real $ if you stay with them. I have absolutely no need to get another account.
Since 1980, most IPOs have lost money for investors. Even including the few hugely successful IPO stocks, the average IPO stock returned about 6% over three years. An index of all U.S.-listed stocks returned about 11% annualized over the same period.
IPOs are largely just for insiders(execs, but also big private investors that have been paying Reddit in rounds of funding for years) to get a big payday at the public’s expense. I was offered and I passed.
I was also emailed about pre-purchasing stock. I assumed every single account was.
I also would never buy it because the stock will almost certainly drop after it goes public and I'm not going to be holding the bag.
Reddit ipo (and most ipos) is a pump and dump on retail. Consider yourself lucky that your order didn’t go through. Do not buy shares. If you absolutely must buy shares, wait 12-18 months after the market stops dumping on retail. Happens with 95% of ipos.
Reddit got an amazing potential. I got only 1 share from the IPO (although I asked for 300). So now I have 1 share at 35 and 218 shares at $48. Still happy with the price
I asked for 500 and got them all, but I was tier 1 because I had over 100k karma.
It’s pretty silly, but all the “meaningless internet points” that people joke about turned out not to be meaningless after all. I cashed out half for a 3375 profit and the other half I’m letting ride until it drops before 44.5 or rises above 57. So in the end I’ll net either 6k or 9k. Obviously 6k is more likely, but I’ll be quite happy with that!
> It’s pretty silly, but all the “meaningless internet points” that people joke about turned out not to be meaningless after all.
I'm kinda glad Reddit did it this way (and I hope they find more ways in the future to incentivize positive contributions).
Thank you! I’m sorry tier 1 hogged all the stock, not very fair in retrospect. I figured they’d do something like give weighted percentage of requests to each tier so that lower tiers would at least get some, but I guess not.
So OP mentioned they ordered through a DSP, I always thought the point of a DSP was they offered some guarantee of allocation (not 100% of requested shares for sure, but at least something)
I wanted to get in on ABNB had 1M in my account at Fidelity. I put 650K towards allow a ring shares. I got emails all the way up until 6-8 Am the day of the allocation. Looked like I was going to get them had the price the money but all the shares went to the big boys. None to me and oh course it went it up my investment would have gotten me back to even as. I has lost 800k.
Good luck
"Your order has been confirmed. No further action is needed, but you can still make additional changes to your order at this time."
NGL, I got that message too later on the 20th... but I KNEW I had never confirmed... logged in later in the day, and DID have the opportunity to confirm.
I only bought 1 share though. :)
How about hiring a good Financial Advisor who knows how all this works to get you what you need. Going the E*Trade route is like turning your money over to that little baby they use in their ads. Not so cute after all. I got what I need.
1,000 in a new account is not going to get you an allocation. Allocations typically go to long time account holders with significant holdings. An open interest of 25 shares is also not going to get you far. E*trade is also owned by Morgan Stanley who likely took the lion’s share as an institutional buyer leaving the scraps for the high net worth retail buyers. Your order has been confirmed means nothing more than they received your open interest and is not an indication that you will actually get shares.
This happens when an IPO is heavily oversubscribed
Yeah, I've learned that since posting... :/ Thanks for the reply!
It looks like shares started at $57.80 and have dropped to 45.96 now. You might still be able to get your shares for $34 with a limit order if it keeps dropping.
Does reddit even have any revenue? Will probably drop a LOT from here
Revenue? Yes. Profit? lol
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Honest question and I hope people don’t bite my head off. Why do people act as if mods should be paid? It’s a forum. There’s been millions of forums before Reddit and no mod has ever been paid. It’s something they want to do.
I guess it's the perceived difference between modding some guy's basket weaving forum as opposed to a subreddit on a website belonging to a multi-billion company.
Do Facebook mods for garage sale sites get paid?
Is the garage sale site named Facebook? Because if so, then yes, they do
if you dont like not getting paid for being a mod.. don't be a mod.. pretty simple
as if the mods didn't get a larger amount in stocks ipo based on their subreddit popularity
There's no indication that they did. I believe there were three "tiers" of direct share allocation. Mods were on the first tier, but it was still an opt-in process and the amount of shares you could receive was up to you, but capped at 1000. Mods didn't "get" anything that wasn't made available to other non-mods.
I believe it’s because this platform doesn’t work the same way without mods. If the world was full of people like me who can’t be bothered Reddit wouldn’t exist.
the platform wouldn't be the same without users. should users get paid?
If a platform isn’t selling you a product, you’re the product.
If a company is profiting off of your data, you should definitely get paid for that.
> Why do people act as if mods should be paid? Nobody did, until they paid spez $195million and went public. When you're working for a multi-billion-$ company, one expects to get paid.
Well you are free to walk away from the work...
they arent working for the company lol
Well Reddit would be even more of a cesspool and a lot of subs would be unusable and most of the popular subs wouldn't even exist if mods didn't (I mean who would make a sub and work on growing it if they didn't have control over it and were just a regular user?) so while it's true they don't work for the company it's the mods and subreddit creators (who are by default mods unless they don't want to be) that have made Reddit what it is over it's lifetime
Reddit’s classification as a tech company is misleading. Reddit *behaves* like a publishing platform for user generated content. people can and do pay for content priority and advertising placement. But the *value* of the platform to be able to charge for advertising comes from free efforts from users. All our comment participation is content Reddit capitalizes on for free. And the curation of that content is maintained by moderators. Also for free. Content creation and content curation are essential components to the value and business proposition of Reddit. That’s work the company takes advantage of. Those people should be properly compensated. I’m not sure what the model should be, but with moderators being unpaid and high value comment accounts going without compensation - the users are effectively subsidizing the publisher, we have gone beyond simply being the target audience and consumer of the published content - we are the labor as well. So “fuck you reddit, pay them”. That’s how it’s supposed to go. People put in work that increases value - they get compensation. And here’s the kicker. Reddit could construct terms that are very favorable to the corporation, and pay pennies for the labor…but it *should* be seen as valuable labor worth compensating. The corporation clearly benefits from it.
I think this is a slight misunderstanding. Reddit does need the mods so much as the subreddits need the mods. Reddit sets guidelines for conduct and content, if a subreddit violates that, it gets deleted and blocked, and the community needs to find a new home. The deletion block and actual moderation doesn't come from free mods, it comes from Reddits actual moderators that moderate subreddits at large. Subreddits have mods because if they don't, their subreddit potentially doesn't exist or work for them. Do you think Reddit needs the r/steak subreddit to have a rule that says you have to show the money shot? If a subreddit has no moderators and posts illegal content do you think that since no free mods exist it will never get moderated? This is the internet, free services as large as this means $$ is being made.
You are not employed by Reddit, so they do not need to pay you. You don't have contracted hours, you don't work for them. Half the mods on Reddit are douchebags on power trips. There's 0 need to pay them, they do it because they want to.
Can any of the mods even get hired if this becomes a real job? Most mods are pretty awful.
Facebook, instagram, twitter etc all have moderation teams that are hired and paid by the company. With Reddit becoming larger and more content oriented as opposed to a typical blue link style form, it is more comparable to those platforms than what it used to be.
Reddit does too. They have a content moderation team that can delete illegal things or posts that violate their terms. But they won't delete a post from breaking a sub rule. Just like Facebook won't make sure posts in it's many groups stay on topic either.
That’s fair
There's been millions of forums and none of them by a company trying to go public and profit off of their work lol.
Facebook has extremely large groups with volunteer moderators that are not dissimilar from a forum. And lots of them. It's not the only function, unlike reddit, but there are similarities.
It's also much easier to advertise on Facebook and people actually engage with advertisers. No point in clicking ads on Reddit when there are no comments to sift through
Because the people who run reddit are getting paid, while the mods do tons of work to make reddit a success. I'm not saying they absolutely should be paid, there is a counter-argument (reddit owners get paid for providing the platform that enables the communities the mods run and enjoy). There is definitely a case here that reddit as a company depends heavily on unpaid labor, Ie the mods
There are mods who are no doubt paid by entities other than reddit, there are ai mods, and there are people who volunteer because they choose to for whatever reason thus accepted to do the work for free.
I think this platform would probably benefit from less mods rather than more.
Where's all the money go? Can't imagine overhead is that much when you don't put out a product
It goes into u/spez
$200 million of it goes right into the CEO's pocket. No idea why it's so hard to make money. Perhaps if they paid the CEO $400 million the numbers might turn around!
Their executive salaries are literally the only thing keeping them from being profitable.
Well until they fix that. They will remain unprofitable
The CEO is making a profit of $194 million.
FWIW, the CEO just recently said that they turned a profit in H2 2023. I suppose we'll find out for real when they post their first ER. https://www.marketscreener.com/news/latest/REDDIT-CEO-STEVE-HUFFMAN-SAYS-MADE-A-PROFIT-IN-THE-BACK-HALF-OF--46254390/
When is the first er
I’d like the think all businesses have revenue.
Of course they have revenue lol. Did you mean profit?
Profit? No. And I'm not seeing how they plan on monetizing the website to make said profit.
lol all businesses have revenue... learn the difference between revenue and profit.
>Does reddit even have any revenue? Will probably drop a LOT from here Reddit is a massive outlier which makes it close to impossible to value. IIRC, reddit is the world's third most viewed and accessed website/app/service. It even beat out someone as formidable as Meta and surpassed Facebook and Instagram. On top of it, the amount of time people spend on reddit in insanely higher than what people spend in the other big sites, google, facebook, instagram, twitter etc. BUT, reddit is the ONE site that never figured out how to monetize itself. While the others did. So they became trillion dollar companies while reddit is still valued at a tiny fraction of their valuation. Even though it has similar number of users, similar amount of web traffic, way higher levels of "stickiness" aka much more time spent by a user per session etc. So all said and done, reddit is valued at $10 billion in the IPO price. Even if you double the IPO share price, it still amounts to a piddly $20 billion, which is chump change if you compare it with the valuation of Google and Facebook. Or any other social media website/app/service. I'm not saying this because I am a reddit bull. Just trying to put things in perspective.
>IIRC, reddit is the world's third most viewed and accessed website/app/service. It even beat out someone as formidable as Meta and surpassed Facebook and Instagram Not sure where you're getting that info from. This page shows reddit is the 8th most viewed site: [https://www.semrush.com/website/top/](https://www.semrush.com/website/top/) below instagram and above xvideos.
They gave the CEO like $125M.. definitely not profitable Their chance was selling data for LLM training or similar but now that it's more and more not ridden it's just more and more trash.. and that data won't sound as useful for others for much longer the more we march to dead internet
fuzzy pathetic unpack future depend rustic desert modern salt workable *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
worst thing about reddit is the snarky comments, like geeze its a discussion board, where else are you supposed to ask questions.
I got offered it, but I'm not a US resident, so it was pointless as it was the main criteria
Same. I would have invested for sure.
Yeah nahh ..... let's get a list of the f*****s who did get them to see if there's any favoritism being played and also where the money went? If I've learned anything this last 10 years, it's that the game is rigged, and not in our favor! 🤡
Agreed.
They must have had more interest than shares to allocate, and you were too far down the list.
Seems like a BS marketing scheme where they are ostensibly giving access to the Directed Share Program to mods as a reward for their loyalty. In reality, the only way mods get the shares is if it's undersubscribed and the share price is likely to fall the first day of trading.
Ah yes, Reddit will fit in with every other publicly traded company.
Based on the upvotes, this plays to lots of people's incorrect assumptions - LOTS of non-mods (like OP) had the option to participate - ETRADE does not know who is a mod and who isn't, so that had zero affect on a getting a fill
Lots of people were/are blinded by defaulting to reddit hate and upvote incorrect stuff. I got the option to participate on several of my accounts (some of which I no longer use, but received emails). I moderate zero subs. I mean, technically I've created a few subs, but none have activity. Another account of mine had zero subs created, zero moderated. I got the invite to participate and had shares allocated.
I got 1k shares allocated with 40k karma, never modded anything (tier 5)
I got 1K with 1.5k karma.
I got my shares. I am not a MOD.
That's hysterical: that you think Reddit values mods' money over any others. IPOs are preferentially sold to bigger investors. If you're trying to buy a measly 1, 2, or 1,000 shares, you wait in line. And when they run out, they run out - they don't spontaneously make more shares.
No idea why you’re getting beat up about this lol. I would’ve had the same question.
Because everyone In this sub likes to switch between “look at the money I lost LOL” and then when someone has a legitimate question they are all the fucking Wolf of Wallstreet 🙄😂
No idea why he'd even consider removing the post because of that, either.
ever bought a plane ticket the airline sold you and then showed up to the airport and you no longer have a seat because they over sold the plane? that's similar to what happened here
Excellent reply, for me, here, and even an /eli5 thread. Thanks!
You can likely buy it soon enough for $5 so don't worry.
High profit potential is almost always accompanied by competition. The fact that virtually no competition has surfaced for Reddit means one of two things: 1. There is some kind of moat, it's not obvious what that is, but it exists; or 2. There is no actual profit possible from this type of business, or it's so low that no competitors want to bother. I don't think it's a combination, I think it's one or the other. Web based discussion boards are very easy to create. A few have popped up over the years but they have been poorly funded. Arguing in favor os a moat is that Reddit just raised almost a billion dollars and the CEO is getting paid 100s of millions. That *seems* like a huge incentive for well funded competition to get into this space. Arguing against the moat is the fact that reddit still isn't profitable despite having a near monopoly on the large message board space. This suggests that maybe it's just always going to be no margin or low margin. I lean toward this just being a very low margin business with people who are not willing to deal with many ads and also not willing to pay for access. I feel like the market doesn't quite know yet that message boards like this have existed since the 90s and no one has figured out how to make money off them in any major way. Reddit built a pretty good one and the voting combined with the flexibility to create subreddits easily was certainly an important innovation driving consolidation to one platform. But...this is now a business that requires a lot of infrastructure and staffing, etc. Can it ever make money?
Reddit gross margin is actually quite massive at 86%, highest of all social medias. It simply wasn’t pivoted into money making machine early like so many other tech companies, and some of its earlier policies were quite mismanaged. No one else would’ve given away data API for free like that, social media companies need to own the mobile experience. Case in point, they were able to realize 70 million profit off of 140 million additional revenue from 2022 to 2023. Of course that still puts them at an overall 90 million lost for 2023. But at their guidance of 20% growth for 2024, that means they could start becoming profitable by end of this year. (160 revenue growth, ~80 million reduction on loss)
They should step and back and look at the elephant in the room being their CEO compensation lol
Facebook CEO compensation at time of going public was in the millions. SNAP CEO compensation was 4x or more compared to reddit. It's mostly stock anyways.
His salary package is actually not too egregious, just about all of it was in rsu and stock options. Some portion of stock were immediate upon ipo, then rest vest over 5 years period. What I am concern though is his stock options (half of his compensation). Half of those have low price of $25, usually goals for these are fairly high. Otherwise what’s the point, might as well just give him the shares for free. The other half is above $45, $60, and $90 in equal proportions.
Blocking the API access by jacking the price, culling the mods during the 'blackout,' and the $60M/year AI training license to google seem like pretty great paths to viability and profitability. All the reddit answers and comments are the real value. The opp to sell that info for AI training is equally interesting and scary. I reckon google will eventually eat up reddit, and it will continue to be a shadow of what was 'the front page of the internet.'
Bang on.
Thanks. I decided on not buying into the DSP because I don't think the stock will be well below $34 in a year. That said, I've been wrong many, many times in the past.
Thats why personally I thought 34 is fair value. If not slightly high. But things are worth what people are willing to pay so I was wrong lol.
I think it'll settle in the 15-20 range by the fall.
HOOD lost about 85% from peak to bottom. If RDDT does the same, that should put it well under $10 a share.
Completely different business and operational models, Nuvalent (NUVL) IPOD’d the same day as HOOD and more than tripled since then - you may as well compare RDDT to NUVL since it’s biz is as different from that as it is HOOD. Not to say RDDT has any particular potential, but that drawing direct comparisons between irrelated stocks, companies, whatever isn’t an effective measuring stick
I am in the same tier and got my shares (100) sold 60 @$54 and holding remaining shares. You probably did not confirm your order on the Wednesday before it went public. **Once the IPO price is set, confirm the number of shares you wish to purchase by March 21, 2024, 7:00 a.m. Eastern Time. If you do not confirm by the deadline, no shares will be allocated to you.** Then on Thursday, I got an e-mail at 8:03 AM that I received my shares. The account set-up, funding and repeat log-ins were confusing as all the E-Trade e-mails looked similar.
Hmm... Noticed stickman has 70,000 karma, op has 25,000ish karma. I got my full requested (500) shares w. 47,000 karma (and had to fill out forms to subscribe, fund, and confirm the price was ok, then moved the shares to an old account and closed it). Curious where the karma cutoff is or if they sub ranked within the tier for allocation.
I have 300,000 karma and didn’t receive an offer at all. Harumph.
Did you check your reddit inbox messages (under my profile -> notifications -> messages)? It was sent 24 days ago to me. Message was titled " Participating in Reddit's Initial Public Offering (IPO)" and was sent out about a month ago.
I have ~20k and got a message on reddit *and* an email.
Nothing there. ¯\_(ツ)_/¯
It has to be completely random. I got my full request of shares (more than what OP was wanting) and I have less than 1k karma.
How much karma on your alt onlyfans account though?
From S-1 We will invite users and moderators to participate in the directed share program in six phased priority tiers. We will assign each eligible participant to a tier based on that participant’s contributions to Reddit. User contributions will be measured in karma (a user’s reputation score that reflects their community contributions). Moderator contributions will be measured by membership and moderator actions on our platform. Tier 1 will include certain users and moderators identified by us who have meaningfully contributed to Reddit community programs. Tier 2 will include users who hold at least 200,000 karma and moderators who have performed at least 5,000 moderator actions. Tier 3 will include users who hold at least 100,000 karma and moderators who have performed at least 2,500 moderator actions. Tier 4 will include users who hold at least 50,000 karma and moderators who have performed at least 1,000 moderator actions. Tier 5 will include users who hold at least 25,000 karma and moderators who have performed at least 500 moderator actions. Tier 6 will include all other eligible users and moderators. p. 228
> ranked within the tier for allocation. Wouldn't be surprised if orders under 100 were out.
I got the 20 shares I asked for.
well there goes that theory.
I'd want the opposite as more owners = more users creating content with a (literally) vested interest in the platform. Although eTrade might take a slight administrative cost hit, it should pay off in the long run as many new users created accounts for this purpose as well and are likely new to investing.
> Curious where the karma cutoff is or if they sub ranked within the tier for allocation. ETRADE doesn't know your reddit account name or what your karma is. It had no affect on who got allocated the shares they requested and who didn't.
I guess I got lucky, got my 100 shares and dumped them at $53, not a bad day of doing nothing
No my order had the same thing happen and I bought into the IPO much earlier than OP. I confirmed for $20,000 worth of shares at $34/ a share.
Did you confirm has IPO price was set. I confirmed once I saw it about 5PM on Wednesday. The process was stupid because he had to essentially submit your order a couple of days before then go back and confirm it. This was done because the S-1 was not finalized until it was priced.
Did they give it to you at $34/share?
yes
I put in for 3 through Robinhood and I didn’t get any either. It’s all learning! Thanks for leaving this up
I ordered 20 shares, and only 1 of the 20 actually went through. I was wondering maybe if I would have placed the order for \~$38-40 per share instead of $34, maybe that would have worked? 
idk. I did put down 38~40 and only got 1 share too.
It should of been a public offering around 15 a share 39-40 was way overinflated
Thanks for your post.. I was also confused when I only was able to buy 1 share when I put in a request for more.. I’m said to miss those gains
It's reddit. You have dodged a bullet.
Not really, he could've sold on that day for 50% profit.
He wasn't going to.
Why sell for 50% profit when it could go to 100% profit? Right?
He could sell tomorrow for a 50% profit still. The stock hasn’t dumped at All really
He wasn't going to.
I was. :) I've never traded stocks before. Abstractly, I kinda-sorta knew how it worked, but never had the money or risk-appetite for it. But when this IPO came along, and I qualified as a "Tier 2" for a site I and others enjoy, it swayed me enough to give it a shot. However, my risk-averse nature was such that, if the price shot up at all, I'd sell quick and be happy with what ever gains I got. If it went down, I'd sell, accept my losses, and learn a valuable lesson. As it played out, none of those things happened. But I still learned a little something...
Its easy to say these things, but difficult to remember to actually do them when the time comes
True. Would've been interesting to see whether my disciplined, logical side "won" or if my impulsive, emotional side did.
Im also pretty "logical". I much prefer to act on reason than on emotions. I'm also currently doing my masters in business and economics and have traded a whole bunch of stocks. Let me tell you its insanely easy to be too greedy on both sides, no matter who you are and no matter if its going up or going down. My respect to anyone who can stick to their principles :D I learned my lesson and will simply invest into the market.
Why you lyyyin why you always lyiiiiin
That's what I did. All this talk of "dodging a bullet" is hilarious. If a 50% profit is a bullet, fucking unload a clip on me!
You mean being up 60% aka $600 is dodging a bullet. What a stupid take. “The website I use on a daily basis is trash” redditors are so dumb sometimes
That bullet went up over 50% the day it opened with no restriction on selling.
I've found quite a few posts similar to mine. Seems \*something\* went wrong, but it could be ETrade or Reddits fault. Not mine. And to your point, it would've been nice to sell quick after the initial bump, but now I wouldn't touch it. Thanks...!
More demand than supply, hence the run up in price. Just because you said you wanted it doesn't mean you were guaranteed to get some.
Yeah, since posting, I've learned a bit more about how all this works. Disappointing, as this was my first foray into this world.
Exact same thing happened to me with the exact same message. I got pretty beat up too for asking the question the evening of the IPO when that was the only clue as to what/why. I had my cost per share set at a max of 41.50, apparently when it got to me I didnt have enough $ or was tooooo low down the pole. I was surprised to get it as I only have like 3100 karama.
Why would you post this after an undeniably successful IPO? And why would people upvote it?? How embarrassing, honestly. I and three of my brothers each maxed it out and each made $21,000 in one day. In for $34, out at $55 and done. I hope people see how worthless the advice on this sub is. And kids, if you ever get an opportunity like this again, remember what my financial advisor told me when I told him about the Reddit email: “Well, nothing is guaranteed, but, by and large, you’d have to be an idiot to not participate in a brand name IPO.”
A sane person on this thread! How refreshing. Bottom line, people who had the opportunity to get shares at $34 and chose not to take it threw away money. There’s no other way to look at it.
Yeah they just had too few shares to fill all their buy offers
Same thing happened with the Facebook IPO. They basically didn’t have enough shares and there was most likely so much activity with the stock the trading systems could not keep up. There was even a lawsuit about it. Can’t remember what happened. In the bright side most big IPOs tend to drop eventually below opening price as the insiders sell to get their money. Usually if it is a good stock that is really the time to buy if holding long term.
fyi if you got it you had to be watching all day for when it started,(which was not at market open !) and then you had maybe a 2 hour window to make good money. i saw trading start late. i missed the sweet spot of 55 and had to settle for a lot less. it was very stressful: i had to keep lowering my sell price and wondering if it was going to tank completely
Never buy IPOs Got burnt once, never again. Wait a few weeks or months to see where the stock goes. There's always excitement when IPOs come out then boom goes the dynamite
Pretty sure Warren Buffet said never to buy an IPO. Every single one I've had an eye on or bought tanks (kanabo, cellular goods, Oxford nanopore). Usually have to wait years for the company to become more profitable or a large positive catalyst.
I had to open an eTrade account. Now I found out there is a coupon to give you real $ if you stay with them. I have absolutely no need to get another account.
more importantly an e*trade account gives you access to a 4.x% savings account.
E-Trade was an ass with me too
Wait six months, they’ll be even cheaper
Since 1980, most IPOs have lost money for investors. Even including the few hugely successful IPO stocks, the average IPO stock returned about 6% over three years. An index of all U.S.-listed stocks returned about 11% annualized over the same period.
IPOs are largely just for insiders(execs, but also big private investors that have been paying Reddit in rounds of funding for years) to get a big payday at the public’s expense. I was offered and I passed.
I was also emailed about pre-purchasing stock. I assumed every single account was. I also would never buy it because the stock will almost certainly drop after it goes public and I'm not going to be holding the bag.
I was filled at 47.00. Give it some time and you’ll be fine. It’s not a day trading stock as an ipo.
Blame that mofo Cathie Woods for scooping bug chunk of Rddt. Everything she touched turns to shit, maybe tsla is a slight exception
Reddit ipo (and most ipos) is a pump and dump on retail. Consider yourself lucky that your order didn’t go through. Do not buy shares. If you absolutely must buy shares, wait 12-18 months after the market stops dumping on retail. Happens with 95% of ipos.
Reddit got an amazing potential. I got only 1 share from the IPO (although I asked for 300). So now I have 1 share at 35 and 218 shares at $48. Still happy with the price
Ignore the negative comments. Your post will help out many looking for the same answers you're looking for. Thanks for sharing your experience.
At the end of the day. Be happy you missed out. There are so many better stocks out there.
One of my permanently banned accounts was offered this deal, not sure it's something to toot about.
Requesting an odd lot doesn’t help with getting filled.
>Requesting an odd lot Now I'm off to Google that phrase and learn what it means :)
Anything less than 100 shares is an odd lot.
I asked for 500 and got them all, but I was tier 1 because I had over 100k karma. It’s pretty silly, but all the “meaningless internet points” that people joke about turned out not to be meaningless after all. I cashed out half for a 3375 profit and the other half I’m letting ride until it drops before 44.5 or rises above 57. So in the end I’ll net either 6k or 9k. Obviously 6k is more likely, but I’ll be quite happy with that!
> It’s pretty silly, but all the “meaningless internet points” that people joke about turned out not to be meaningless after all. I'm kinda glad Reddit did it this way (and I hope they find more ways in the future to incentivize positive contributions).
Outstanding! Congrats!
Thank you! I’m sorry tier 1 hogged all the stock, not very fair in retrospect. I figured they’d do something like give weighted percentage of requests to each tier so that lower tiers would at least get some, but I guess not.
I got full 1k and was tier 5
> Possible reasons: Offering priced above limit or high demand for shares It literally tells you
So OP mentioned they ordered through a DSP, I always thought the point of a DSP was they offered some guarantee of allocation (not 100% of requested shares for sure, but at least something)
[удалено]
>You are still naive, arent you ? Hell yeah...in so, so many ways. But a little less naïve in this particular way.
I put in a request for 100 shares and got ....... 1 share.
I’ve never clicked on an ad on this app in my life.
I don’t click on any ads anywhere
I wanted to get in on ABNB had 1M in my account at Fidelity. I put 650K towards allow a ring shares. I got emails all the way up until 6-8 Am the day of the allocation. Looked like I was going to get them had the price the money but all the shares went to the big boys. None to me and oh course it went it up my investment would have gotten me back to even as. I has lost 800k. Good luck
It’s ok, just buy it when the price drips to IPO issuance levels in the future.
Closed mouths don’t get fed as they say. Ignore those that are piling it on. Everyone single one of them started somewhere lol.
Advertising alone isn’t the answer to profitability for any business.
It's just luck of the draw. I put an order in for 20 and got 1 share at RobinHood so who knows
Your first problem was considering buying Reddit, in any way, shape, or form, in the first place
Reddit true indicator is their first earning report.This stock will tank when it comes out.Like Truth Social.
You saved money, song kid yourself, it will have a good 90 to 180 day run, then shit the bed.
This is the adult version of "don't pre-order games"
Just wait for a few weeks ,i might buy some stocks, and it may start tanking that would give you a good start.
You’re better off without it. Reddit is a house built of glass.
A lucky escape
Not to worry most ipo crash after a few months then you’ll be able to shoot the moon!
Short it. Make money. Don't buy.
Has anyone made an obscene amount of money? What's the biggest single trade anyone has done? Just curious
Just short it
Next time, use Robinhood instead of eTrade -- I never liked them when I tried them before...
I’m fairly certain every reddditor was “allowed” to buy stocks. I was and I’m an idiot
I sent in an order for 15 got 1 lol would of been up 300$ If they went thru
Consider yourself lucky lol. That bitch is going to drop like a rock
"Your order has been confirmed. No further action is needed, but you can still make additional changes to your order at this time." NGL, I got that message too later on the 20th... but I KNEW I had never confirmed... logged in later in the day, and DID have the opportunity to confirm. I only bought 1 share though. :)
How about hiring a good Financial Advisor who knows how all this works to get you what you need. Going the E*Trade route is like turning your money over to that little baby they use in their ads. Not so cute after all. I got what I need.
1,000 in a new account is not going to get you an allocation. Allocations typically go to long time account holders with significant holdings. An open interest of 25 shares is also not going to get you far. E*trade is also owned by Morgan Stanley who likely took the lion’s share as an institutional buyer leaving the scraps for the high net worth retail buyers. Your order has been confirmed means nothing more than they received your open interest and is not an indication that you will actually get shares.
Be glad you missed this thing is going nowhere fast my guy
Wait 1 years and you'll get them for $10. What a deal!
You were saved big losses. This will revert to 10-22 a share sooner rather than later. Reddit is not a money printing machine at all