A lot of Redditors hate the Reddit IPO
www.theverge.com
“Yea I’m not buying. But I will be watching it tank.”

A lot of Redditors hate the Reddit IPO | Reddit warned us that its users were a risk factor, and boy do they sound excited about shorting its stock.::Reddit seems like a likely candidate for a meme stock. But the actual reaction suggests that r/WallStreetBets isn’t going to send the stock to the moon.

  • EatATaco@lemm.eeEnglish
    4·
    10 months ago

    Thanks for the response. But on this:

    The idea is that institutional/wealthy investors are savvy enough to figure that out on their own.

    Do what on their own? I don’t quite follow what you are alluding to here.

    • AngryCommieKender@lemmy.worldEnglish
      21·
      10 months ago

      Assessment of the company, its current finances, its past finances, and hopefully that will give them a decent forecast of the company’s future viability.

      In reality it’s all just gambling.

    • nmfisher@lemmy.worldEnglish
      11·
      10 months ago

      Public fundraising laws exist to protect the average Joe from losing his life savings to fly-by-night hucksters while trying to ensure companies can still raise capital.

      If you’re a wealthy/sophisticated investor, the expectation is that you’re already capable of assessing investment risk on your own (including, if you think necessary, getting your own lawyers, direct access to a company’s financial reports, due diligence, etc). Average Joe, on the other hand, is required to be given audited financials, a prospectus that’s vetted by regulators, explicit statements of share rights, etc etc.