“Reddit’s Public Offering: A Meme-Lover’s Dream for Traders and Trolls Alike”
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.
The stock was so volatile, jumping more than 600% within days, that trading was halted multiple times.
Retail traders tried to replicate the GameStop saga by investing in other heavily shorted stocks like AMC and Bed, Bath & Beyond, solidifying this phenomenon of trading “meme stocks,” to mixed results.
This is a rare move that would let community members buy stock at the same price as institutional investors upon IPO.
In 2023, Reddit incurred a net loss of $90.8 million, adding to the company’s cumulative deficit of $716.6 million.
