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.
And while Huffman now thinks that Reddit as a corpus of training data for AI is valuable, he let his board member Sam Altman siphon off Reddit data for free; Altman was, and still is, the CEO of OpenAI. Altman’s also Reddit’s third-largest shareholder and owns more than twice as many shares as Huffman. Altman was the CEO of Reddit for eight days.
Say what now
Huffman also made $193 million bucks, according to the article.
How much is a dollar buck in USD?
1 Buckaroo
About 1/10 of a banana
About a hundred Stanley Nickels.
Same as a bill.
Holy crap I did not know that! This is huge
Altman was the head of Y-Combinator, Reddit is a Y-Combinator project.
fuck spez
fuck spez
suck fpez
Nobody’s doing shit with this stock.
It’s all a manufactured cover story for hedge fund/institutional manipulation to blame retail for volatility and attempted fleecing.
I’m thinking of shorting it. My friend is definitely shorting it.
I’ll be shorting it the minute outs come out. Won’t buy naked shorts though
Also this scrambling to make Reddit “profitable” and fucking Spez pays himself nearly $200 million a year. Fucking ridiculous. Burn it down. Build something better that hasn’t been captured by complete twats.
Nintendo CEO cutting his salary in half to avoid laying off workers after the Wii U fails versus whatever the fuck Reddit is doing
Satoru Iwata was a treasure.
Excuse me, is this for real?
I hate Huffman as much as the next guy, but the $193 million factoid is misleading clickbait nonsense. His actual salary is apparently $400k, the rest is “stock value” or whatever. Reddit is not giving 25% of its yearly revenue to the CEO.
This argument is oft repeated but It’s Bullshit. If it wasn’t valuable why is Spez okay with it?
Stock grants not being direct Income isn’t clickbait nonsense. It’s actually DELIBERATE: Spez doesn’t pay income taxes on a majority of his income. Capital gains tax has a lot of loopholes that can be exploited.
This just gives spez more money and he can cash out in the IPO.
For anyone that’s fallen for the “{wealthy person} doesn’t actually have ${huge number} because it’s stock” thing, here’s how it works.
- Wealthy people with lots of stock get access to very, very cheap credit. Not credit cards like the plebs get with a 23% APR, multi million dollar lines of credit from places like Goldman Sachs with hyper low interest rates.
- Wealthy people use that credit to live indistinguishably from a person that actually has the vast wealth that they have access to. Spez might “only” make $400k but if he has access to $50M in cheap credit it spends all the same.
- Wealthy people enjoying their access to cheap credit which spends the same as income then get to dodge income taxes and instead use the more favorable capital gains tax rates.
- As a fun bonus, they also get to go “you morons I don’t have $200M that’s all just on paper, I only pay myself $10 a year because I’m a man of the people. Now if you’ll excuse me I have to get on this private jet”
You might be wondering, why do they get this cheap credit? Because it’s a very safe bet for the financial institute, they are acting as a sort of time arbitrage mechanism for the person they are extending credit to. Since they perform this function they can be relatively assured that this will allow their client to sell their stocks, not because they have to cover expenses, but because capital gains protections and the market is favorable. It also aids in fostering a positive relationship with someone with a lot of wealth which is something financial institutes have an interest in doing.
All the actors are doing what’s in their rational self-interest. The end result is that Spez can access a large part of that $200M as liquid cash right now through credit with one hand and with the other wave you off and say “those are stocks I actually only got paid $400k”
Almost always executive compensation is partly stock. That doesn’t change the fact that he was compensated that much. You can’t say Elon Musk isn’t worth 200b$ because it’s not liquid.
I mean, you could say that because it’s just an estimate of what his assets are worth using the current valuations of his holdings. It’s more of a statistical average of what he could be worth then a concrete value. You can’t know the actual value unless someone makes an offer and it’s accepted. If he’s feeling pressure to sell, it will be lower than that. If he isn’t, it will be higher than that.
Whole Wall Street is built upon this “estimation” idea. No reason to nitpick about it when it comes to executive compensation.
Huffman’s wages of $193 million per year is absurd. That’s double what Tim Apple makes. It’s almost 4x what Microsoft’s CEO, Satya Nadella, makes, and 4x what Netflix’s CEO, Reed Hastings, makes. During the writer’s strike a big deal was made over David Zaslav’s compensation, but even that’s not as much as Huffman makes.
Imagine they reduced Steve Huffman’s wages by $100 million per year. For that much, they could give the top 10,000 moderators $10,000 each per year. For some, that might not match the work they put in, but it would sure be a nice gesture, and would make them feel like the work they were doing was appreciated. Meanwhile, Huffman would still be one of the highest paid CEOs in the world.
P.S. stop saying “spez”, the guy has a real life name, and that real life name should be the one that’s tarnished.
Steve Huffman fucks underage goats.
I don’t care about my ex
While I also feel like the past is better left in the past, I am certainly not above a little schadenfreude, either.
Removed by mod
No, you’re seeing this the wrong way. The iceberg stands for urgently needed structural reforms in the body of the Titanic. After the project is completed, they’ll make movies about the whole thing, you’ll see!
Leopards ate my face. They are acting like this is a new betrayal that needs stopping. These are the same people who were telling us the 3rd party app changes aren’t a big deal.
I don’t get why, if these people hate Reddit so much and they want the IPO to fail, why are they still using the platform?
Once people get burned with that stock purchase email, they are going to have even more pissed off users.
I don’t get why, if these people hate Reddit so much and they want the IPO to fail, why are they still using the platform?
Could be several reasons:
- they’re addicted
- they don’t know any alternatives
- they still like using the platform, they just disagree with the financial/executive decisions being made
- the alternatives don’t have equivalent communities
- their communities don’t want to move to an alternative
- they like the alternatives even less than Reddit
Honestly, Lemmy just does not have the amount of niche content nor the large userbase of reddit. I don’t even bother following communities here because there’s barely enough on c/all.
The only reason I haven’t gone back to reddit is because I know for a fact things are only gonna get worse on there. That, and pure unadulterated spite.
Also, for some hobbies/interests, there really isn’t another space. For instance, if you’re into tactical gear, there’s really not another community like r/tacticalgear. Lemmy has the promise of being free from Reddit’s admin and moderator madness, but doesn’t have the user base and neither do any other sites.
TwoXChromosomes has the same problem, though of course it has a much wider appeal. The moderators there protested the API changes and the gradual decline of Reddit in general, but they face two bad choices, and I genuinely don’t know the right answer:
-
Keep serving as a large and visible space for women within the confines of Reddit’s sinking ship
-
Abandon Reddit (ship) and let Reddit powermods run a space that they may be uniquely unqualified to operate. those same powermods/admins don’t care about doing the right thing in every other sub they control, so why would they ensure that women are protected from, say, tracking their visits to Planned Parenthood and selling that data to “advertisers” or hostile governments.
We need Reddit to truly self-destruct to ensure an Exodus, and right now it’s crumbling but not broken yet. It’s honestly sort of a mirror to society in general. We’re in the Crumbles, and every day we inch closer to the final straw that breaks the camel’s back.
-
FOMO.
Kept me on Reddit for a lot longer than it should have.
It’s where a lot of centralized communities are for niche topics, so it’s kinda hard to just drop it entirely. I haven’t posted on Reddit since moving to Lemmy, but I still lurk on some of my old subs for news and events in my city or to keep up to date on some of my hobbies. I can get memes and news here, but for the hyper-specific stuff I can either lurk on Reddit or dust off my Facebook account and try to find a relevant Group. Given the choice, I’ll take Reddit.
As someone on wsb and totally going to short the stock. They named the sub in their Ipo and that we were going to short the shit out of them.
I think it would be rude not to deliver on said promise. Honestly from what I’ve gathered on the wsb discord we kinda just wanna see reddit on fire. At least that’s the general sentiment I’ve perceived.
Also the main thought has been that as soon as they IPO they’re gonna get their board taken over and kick us out first thing.
please use puts for that
Gotta wait a week after the IPO launches for options usually.
Reddit has a near-monopoly on forum communities. It is ranked 16 on similarweb and no other competitor comes even close in terms of community size. It’s like Facebook in its dominance.
Is it though? Everyone I know aged 20 to 85 i on Facebook, some more active than others. I think I know 3 people irl that use reddit. Mind you I’m not in the US, where is more prevalent but most people I know have barely heard of reddit.
Sure, it has near monopoly on forum communities but that’s a tiny niche on the internet
Most normal people don’t admit to using Reddit, and it is not a platform you use to connect with friends in real life. Facebook has a different use case entirely.
Fair enough, still feels like we are comparing nestle with your city’s local chain of 7 minimarkets, sure I might have a few more acquaintances that use reddit but that is not 100% of them. I did a quick search from my phone, hope the sites is reliable and that I didn’t fuck up anything
According to this reddit had just under 75 million daily active users in q3 2023 https://www.statista.com/statistics/1453149/reddit-quarterly-dau-by-region/
In the same q, Facebook had https://www.statista.com/statistics/346167/facebook-global-dau/ 2110
So reddit need to grow another order of magnitude for op statement that it is comparable to fb in its dominance to become remotely true. Ideally two orders of magnitude.
I get it, we have all spent too much time on reddit for years and feel like that’s basically the whole of the internet but we are biased, there is a whole majority of people out there that don’t even know that exists
Your first sentence suggests you’re disagreeing, but nothing you said after that is incompatible with anything gp said.
They are saying it’s like Facebook in its dominance, I’m saying it’s not like Facebook, clearer now or you want me to come over with a whiteboard?
I don’t get why, if these people hate Reddit so much and they want the IPO to fail, why are they still using the platform?
Why do people still use Xwitter even though that entire platform has become a wasteland of bigots, assholes, and authoritarians?
… Work? That’s the only good reason I can think of. People use X and reddit for very different reasons. The platforms aren’t similar at all.
Habit. Inertia. Ease
Because that’s where the convo is.
But that’s people. People make convo. We like people.
What we hate is the spider. Squatting on, manipulating, sucking the people.
Kill the spider.
This pre-IPO invitation to buy is the “pump” part of pump and dump, of course everyone hates it, lol.
“I think it’s pretty cool that Reddit is doing this IPO offer to their mods and users,” a Reddit user who asked me to identify him as Kevon tells me. “It’s a nice little thank you that actually may have some monetary value.”
Kevon’s considering buying shares in the Reddit program, and may buy more once it goes public, if he feels the stock is undervalued.
Kevon sounds like a nice guy, but someone should explain to him the difference between being given options and buying shares at the IPO price. Reddit’s not doing him any favors.
Dunno…if I can buy, then dump everything 15 seconds after open, it’d probably be an easy win.
There will be a spike in the first minute of trading, then it will crash and burn.
Yeah, we could ride this perhaps
I’d probably try something similar if I could, I’m not in the US though.
This feels like another “Netflix are coming after password sharing, HOW DARE THEY, EVERYONE WILL CANCEL AND THEY WILL BE BANKRUPT IN 6 MONTHS” circlejerk we recently read.
Then Netflix announces a pretty good quarter and all of a sudden these people are silent.
This feels like it’ll be that. I could be wrong. But it really feels like the echo camber will lose its mind again in a few months when the stock is priced above zero and maybe actually doing quite well.
Yep. Unfortunately companies have learnt they can get away with shitty practices. It is only thanks to government groups like the EU that some of them are being reined in, but even with them they get away with a lot.
Without them I suspect we’d already have a matrix type scenario.
I just canceled a week ago.
Please note that some of us are in family plans and it just took that long to convince everyone to drop Netflix.
Sometimes it’s less of a burst and more of a slow burn.
Anecdotal evidence is not evidence.
Comments like yours was exactly what I was reading when everyone was losing their minds the first time around.
LOL can’t believe you got downvoted for talking about things you saw with your eyes. I saw those same things.
Yes, and I never claimed it’s the same as proper stats, just wanted to point out the outrage didn’t mean everyone canceled right away.
The ironic thing is that Netflix didn’t have family plans.
The stock market doesn’t reflect reality. It reflects the confidence of rich people in certain stocks.
LOL i remember how people would rage on Reddit about Netflix and act like they were the worst company with the worst lineup in all of history. Then the following month, subscribers increased. It really became a hate meme.
Vocal minority as always
Well Netflix doesn’t publish viewership numbers, just subscribers so we have an incomplete view of how much of an impact the crackdown had
Reddit warned us that its users were a risk factor
This means they’re positioning themselves solely as a source of training data. If their users are a risk factor, not the entire product, they’re completely uninterested in maintaining a user base and think that what they have is all they’ll ever need to sell.
Google is paying something around $60m a year for AI training on reddit content
So that’s gonna be helpful lol
I’m not sure that conclusion follows. There are many more potential future users than there are current users.
That’s the logical framing. But if they believed that, they wouldn’t call their users a risk factor; they’d be the entire product.
Fuck Steven Huffman.
Fuck spez
Predicting the long-term results of the reddit IPO is tricky, because it involves two large groups of highly irrational actors. 'Tis a silly place.
I speculate (hope) it will go very poorly for them. But anything could happen. They might fail upwards and print money.
Will be interesting to watch.
I’m guessing it’ll do pretty well, at least initially. There’s got to be a whole lot of investors out there who just want to get in on the new big tech IPO and still jump in. I’m not convinced the WSB crew will really move the dial. Yeah it’d be an amusing and salutary lesson if the IPO shits the bed but I can’t see it happening. I’m no expert tho!
They lost about $90M in 2023, seems like a really bad investment. But yeah, it probably will do well, at least for a while, because it’s all just gambling and BS.
I have a feeling that if a pump and dump happens, all the people who are actually involved (who aren’t already rich) will have their funds completely taken from them and the companies behind it will claim it as an attempt to stop fraud or some other bullshit they know is fake news.
Reddit is going bankrupt soon.
