Reddit's IPO Announcement: Moderators Offered Stock Options, but r/WallStreetBets Reaction Remains Lukewarm

Reddit has declared its intention to go public. The community-focused message board site plans for an upcoming IPO slated for next month under the ticker RDDT. Alongside this announcement, the platform disclosed that it has reached an agreement with Google to license its content for AI training for $60 million per year.

Reddit’s IPO strategy is different because of its offer to moderators. The platform will grant them the opportunity to purchase company stock. This unique proposition introduces a potential risk factor. Many Redditors becoming shareholders has raised concerns about market volatility, an aspect noted in the platform’s IPO filings.

Reddit Users Show Little Interest in Purchasing its Stock

Observations from r/WallStreetBets, a subreddit with 15 million members known for its meme-driven discussions about stocks, suggest a lack of enthusiasm.

When the IPO news came out, reactions on r/WallStreetBets ranged from doubt to disinterest. Some users jokingly mentioned shorting the IPO, while others hesitated or outright dismissed the idea of investing in Reddit shares. Even a moderator with over 300,000 Karma points questioned the investment potential after being invited to the Directed Shares Program.

A similar tone was found in r/stocks, where users talked about shorting Reddit IPO and expressed doubts about its long-term profitability as an investment. Despite opinions shared, it’s important to remember that platforms like r/WallStreetBets and r/stocks may not always offer financial advice, often serving as spaces for speculation and venting.

Criticism towards Reddit’s IPO and the platform is not unusual, reflecting viewpoints among its user community. However, whether these perspectives will significantly impact Reddit’s IPO outcome remains uncertain.

In forums, opinions are plentiful. Their ability to predict market trends is up for debate. As Reddit prepares for its IPO, one thing is for sure. The ongoing intrigue and amusement accompanying the platform’s transition to the market are undeniable.