As of January 29, GameStop’s price is fluctuating a bit, but hovering around $200 per share (Apple is worth about $140 per share, for comparison). On Wednesday, January 27, GameStop closed at $347.51 per share, and some estimate it might reach $420 per share by April. Yet previous Reddit-fueled rallies typically lasted a matter of days before profit-taking pulled prices back to earth. The subreddit’s obsession with GameStop shows no signs of abating. Simply put, the subreddit amplified a trade, stoked a fear of missing out that pulled in new investors, and reveled in Wall Street’s surprise.
As InvestorPlace contributor William White wrote this morning, OPEC and its allies have agreed to keep production cuts in place through April. This will keep pressure off oil prices, and allow us to see further gains. Plus, the United States has said that it will not resume high production levels at any point in 2021.
- After the pandemic boom in tech stocks, new stock issues slowed to a trickle as tech stocks crashed in 2022, which seemed to put Reddit’s IPO plans on hold.
- Our estimates are based on past market performance, and past performance is not a guarantee of future performance.
- Once you open an investment account and add money to it — and Reddit goes public — you’ll be able to buy the stock.
However, Reddit is a unique property on the internet and social media, and its recent growth is encouraging, especially during a broader slowdown in digital advertising. Without knowing its complete financial results, it’s difficult to say whether it’s a good idea to invest in Reddit stock, especially since the company doesn’t have a clear valuation. Although Reddit makes most of its money from advertising and an ad-free premium membership plan, it has struggled to tap into that business model so far and is still unprofitable despite operating for nearly 20 years. Social media has been a fabulously profitable business model for companies like Meta since it allows them to sell ads against user-generated content, which can be very lucrative with enough traffic and the right targeting. Ohanian has also made seed investments in other Silicon Valley darlings, such as Instacart, HR management company Zenefits, real estate firm Opendoor and autonomous car company Cruise.
On Wednesday alone, the hot stock jumped by more than 100% after Tesla and SpaceX CEO Elon Musk further fanned the flames on Twitter after markets closed Tuesday. After shares experienced their initial pop roughly two weeks ago, gains have continued in pronounced fashion https://g-markets.net/ and amounted to more than 300% this week alone, through Tuesday’s close. Complete digital access to quality FT journalism on any device. Reddit Inc. has picked the New York Stock Exchange for its initial public offering, according to a person familiar with the matter.
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Reddit is not currently publicly traded, but there are signs the social media company, which was founded in 2005 and best known for its tens of thousands of message boards, is preparing for an initial public offering. As a group, the WallStreetBets group caused a handful of companies’ stocks to spike, including GameStop, and made the case for the stock as a value investment — that it was more valuable than the stock price indicated. Hedge funds started to sell the stock short, betting it would go down. Yes, you have Twitter but this is a different animal.
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The digital nomad Reddit thread has been like my go-to place for years. There are very few platforms I can think of where you can find any group that might align with your interests and connect to people no matter where in the world you are. This subreddit’s purpose is to analyze, discuss, and participate in stock market related areas. The rest of your account could be made up of funds, such as index funds. Funds offer instant diversification for your portfolio since they invest in lots of companies at once.
Monetizing the meme
There’s also financial gain to be had for those pursuing internet notoriety. Reddit users can award posts and comments with various virtual medals, many of which can be gifted only through the use of real-world currency. The core behavior seen in the market isn’t unheard of. During the GameStop-trade saga, several Wall Street Bets posts with tens of thousands of upvotes have graced the pseudo-hall-of-fame page. Countless users unfamiliar with Wall Street Bets have been exposed to its exuberance and high-risk, high-reward behavior, often through posts showing off multimillion-dollar gains on GameStop shares. Reddit Inc. posted a more than 20% rise in revenue in 2023 versus the year before, people familiar with the situation said, as it prepares for one of the US’s most anticipated potential initial public offerings.
I honestly, I might be interested in buying the stock. We know that Reddit primarily generates its revenue through advertising. And in this current situation, there’s some satisfaction in seeing the swarm come rushing to the “aid” of brick-and-mortar companies, like GameStop and AMC, that have been pummeled by the pandemic. It seems wrong for people to be profiting off the decline of these companies during a global calamity, and the idea of a huge raucous group of extremely online kids fighting back against the short sellers is certainly appealing. Another of the companies they’ve rallied to is BB Liquidating, Inc., the penny stock for what remains of the company once known as Blockbuster Video, but this effort isn’t going to “save” Blockbuster, which is long gone.
And Wall Street Bets’ ability to turn free, user-produced research into hugely viral media has seemingly been underestimated. There’s no easy way to invest in Reddit right now since it’s not publicly traded. You’re better off waiting for the IPO, which is expected as early as the first quarter of 2024.
Almost any post related to the stock market and investments is welcome, including pre IPO news, futures & forex related to stocks, and geopolitical or corporate events indicating risks; outside this is offtopic and can be removed. A good rule of thumb is to not invest more than 5% to 10% of your overall investment portfolio (that includes all your investment accounts, such as a 401(k), an IRA and any traditional brokerage accounts) in individual stocks. For easy math, that means if you have $100 to invest, you may only want between $5 and $10 to be allocated to individual stocks such as Reddit.
Reddit has attributed previous losses to investing in the platform, and the fact that its users engage less with advertising on its site than other social media. Social media platform Reddit is preparing to launch an initial public offering in March, moving forward with a listing it has been eyeing for more than three years, people familiar with the matter told Reuters. Individual investors and their constant stream of communication are making waves. Be a part of the action and take a look at Reddit stocks today.
However, Reddit is a unique property in the social media sector, and rumors have long swirled about a possible initial public offering (IPO). The company even filed pre-IPO paperwork with the Securities and Exchange Commission (SEC) in 2021, but with tech stocks crashing in 2022, it chose not to move forward at that time. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. Once Reddit IPOs and is a publicly-traded company, you can decide how much you want to spend on its stock. If you open an investment account with a broker that offers fractional shares, you’ll be able to pay for your stock in a dollar amount rather than a share amount.
Publicly Traded Company
While others in the C-Suite have yet to set a timeline, but the company is working toward that end game. Thankfully, the week is almost over and the weekend is so close. Before we get there though, we have one more day of trading. Moat of the stocks i own fell 20%, 30% in a matter of 1-2 months and i don’t understand what’s happening.
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Stay on-topic to Stock Market
The San Francisco-based social media company, which said it confidentially filed offering paperwork in 2021, is expected to unveil the filing later this month, the person said, asking not to be identified discussing information that’s not public. The Wall Street Journal earlier reported on the choice of NYSE. It’s a win for the NYSE in its competition with Nasdaq for high-profile IPOs. In February 2023, The Information reported that triangle pattern crypto the social media site was aiming to go public in the second half of the year and said the company has been waiting for the IPO environment to improve, keeping its paperwork up to date. That didn’t happen, but the company could make its public debut in the coming months. After the pandemic boom in tech stocks, new stock issues slowed to a trickle as tech stocks crashed in 2022, which seemed to put Reddit’s IPO plans on hold.
NerdWallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Our estimates are based on past market performance, and past performance is not a guarantee of future performance. February was a much better month for the economy than January. Covid-19 cases started to come down, and more and more Americans are receiving vaccines.