I guess because I used to be a terminal r*dditor, I got an offer to participate in its IPO. Should I?

afaik (which is not much) the IPO price is usually lower than what it ends up being on the market soon after, correct? If so that could be a relatively easy way to make some money. How correct is that? I know it's still gambling, but like gambling with much better odds, no?

Edit: I mean to sell it pretty soon after the IPO is over. Not a long term investment of any kind.

  • betelgeuse [comrade/them]
    ·
    8 months ago

    Look at comparable IPOs in the sector. I don't know the value argument for reddit in its current state. Unless they're constantly increasing their gold revenue or increasing their advertisement income. You could get some different people on the board to push the site in a different direction and make the price jump, but I don't know what the situation is with Spez & Co.

    it could become a meme stock on reddit, but in that case you want to short it. I would short it anyways tbh. The macro environment isn't there. If this was 2020, maybe it could run and stay up. I don't think there's a strong value argument. Spez isn't enough of a personality to base everything on himself like Elon. It just doesn't seem to be a good long position.

    If you're into options maybe there's a volatility play.

    • edge [he/him]
      ·
      8 months ago

      I meant more like buy at the IPO and sell pretty soon after.

  • Maoo [none/use name]
    ·
    8 months ago

    This machine's hot tonight! Bet it all, gramps! Baby needs to lose their retirement!