Reddit Insiders Selling Days After IPO; Shares Fall
https://www.investors.com/news/technology/reddit-insiders-selling-days-after-ipo-shares-fall/
CEO Steve Huffman and others disclosed sales days after the IPO.
https://www.investors.com/news/technology/reddit-insiders-selling-days-after-ipo-shares-fall/
CEO Steve Huffman and others disclosed sales days after the IPO.
Pump and dump. They sold all those shares to shareholders and they are going to answer to them now. They stopped listening to the users a long time ago. Enshittification is inevitable.
It's already fairly enshittified. The discourse has really gone downhill over the past few years. Remember how good the AMAs used to be? Or the AskReddit threads that were full of interesting stories?
They tried to pump up by selling to reddit users first. On a platform that literally has communities dedicated to fucking up stock prices.
Unfortunately, they somewhat succeeded. Greedy little pigboy got his $16m dump, right after using the Reddit users to pump.
Greedy little pigboy was always going to get his cut, that was the whole idea. Build something juust big enough to get bought out, and if that doesn't work, sell the parts as unethically as possible.
I look forward to him thinking he's a big dick player now and getting absolutely chummed by the real sharks
They’re getting the payday they promised themselves and they are doing it now because the share price will probably never be this high again.
If Spez was paid $93 million last year and all but $600k of it were shares, you can bet he still has plenty left.
Because the stock market is mostly based on mob thinking/human psychology rather than being based on reality.
Not mostly, but people are buying Truth Social shares not because they think it's a sound financial decision, but because they support the company. It's meme stock logic.
It is not. This is deeply unethical.
If a company takes its stock public, the shares sold generate cash which is held by the company selling them, and used to build the business. Nobody who bought them, including the insiders, is really forbidden from selling them (except insofar as insider trading laws apply), but if an insider sells shares this early it indicates a deep distrust by the seller of the underlying value of their own company. Doing so while letting outside investors spin is therefore unethical because it signals that the people who built the company are planning to abandon it and let the stock tank.
See also: lock-up period, which is not required during an IPO (news to me!) but the absence of a lock-up period sure seems like a red flag someone should have noticed. Although, I suppose, many people did.
This is normal when a company goes public and is overvalued. It's precisely what you expect the insiders to do.
I remember reading somebody saying they were going to buy it and put a sell order for when it hit 69. Just looked and too bad for them. It seems to have maxed out at 68 dollars.
You are correct, I looked at the month long view and I guess it was there for such a short time that it didn't register on the longer timeline.
i hope shares plunge to the ground so that people feel or have to switch to something new but kinda similar, like lemmy
Maybe we could all just start buying shares for no reason. At some point the community will get bored and the stock will tank
This only works to fuck short sellers, not people who already have shares. If you buy shares right now, you're not only screwing yourself while the other bag-holders minimize their losses by selling, but keeping the stock overvalued until greedy little pigboy can dump the rest of his stocks.