Reddit cites r/WallStreetBets as a risk factor in its IPO filing | TechCrunch
techcrunch.com
As Reddit finally files to go public, the company wrote in its S-1 filing that "meme stock" schemes on r/WallStreetBets could pose a risk to investors.

Reddit cites r/WallStreetBets as a risk factor in its IPO filing::As Reddit finally files to go public, the company wrote in its S-1 filing that “meme stock” schemes on r/WallStreetBets could pose a risk to investors.

  • gedaliyah@lemmy.worldEnglish
    23·
    9 months ago

    Here’s a serious question: should we be bracing for a massive influx of stock bros after reddit inevitably find some pretext to shut down wallstreetbets?

  • Jackcooper@lemmy.worldEnglish
    10·
    9 months ago

    Does people trying to short you make your stock less valuable? Maybe because potential investors can see the sentiment?

    • doctorcrimson@lemmy.worldEnglish
      8·
      9 months ago

      A Short Sale position is actually a risk and if people know you’re doing it they will ride you to the bank by buying up as many shares as they can and force you to pay them when your deadline to repay the borrowed shares comes up.

      WSB might be the butt of a lot of jokes but they have (in the past at least) analysts and insights that rival top investment firms, not reflecting of the average participants performance. A much more logical decision would be to inflate the price at launch and then when it reaches a critical state ride it (short sell) into the ground as it panic sells into penny stocks.

  • BombOmOm@lemmy.worldEnglish
    82·
    9 months ago

    They have been purging subreddits for years that are not advertiser friendly, usually after they get media attention. Really no reason to expect them to stop the purges. There is a reason I am here and not there, and that is just one of them.

    • TurtleJoe@lemmy.worldEnglish
      21·
      9 months ago

      Lol, WSB hates the apes. They like to actually make money, instead of incinerating it on companies going through obvious death spirals.

  • jeffw@lemmy.worldEnglish
    5·
    9 months ago

    I mean, it’s true. WSB has been under scrutiny and introduces the risk of litigation or legal action towards Reddit. That could hurt stock prices. It’s all pretty routine to disclose potential risks in IPO documents or regular annual shareholder documents.