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With Reddit becoming public, why are the founders creating so much drama around the site? Wouldn't that make their IPO worse? (kbin.social)

submitted 2 years ago* (last edited 2 years ago) by --@kbin.social to c/NoStupidQuestions@kbin.social

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I'm not into investing, so sorry if this doesn't make sense.

With all the drama and news surrounding Reddit recently, why is Reddit making such bad decisions when they are about to go public? With all of their negative decisions they've been making recently, wouldn't all the bad press make their IPO worse? Are they trying to maximaze their profits to make their company seem better to investors when they go public?

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[–] furrowsofar 2 points 2 years ago (1 children)

Buying IPOs are generally pretty risky. It is not uncommon for the IPO price to be unrealistically high then a year later for the price to be much lower. It will be interesting to see what happens with Reddit. Not sure why the big deal of "getting in" on an IPO. How often does buying at IPO actually work out?

[–] Curtains 1 points 2 years ago

Absolutely risky, but most of the initial holdings are from employees. And they all usually sell a large share of their assets when they are cleared and able to do so. That also helps tank the IPO price.

Generally IPOs are risky. Always good to wait like at least a month or 2. Usually a year to let level.