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As Reddit makes its highly anticipated listing on the New York Stock Exchange (NYSE), the platform’s users are taking advantage of the stock’s impressive performance, which generated billions of dollars in profits in its first day of trading.
Thousands of people attended the IPO, despite Chief Financial Officer Drew Vollero’s previous comments that some Reddit users expressed reservations about the IPO. Reddit’s stock price closed up 48% on Thursday at $50.44, well above its starting price of $34.
An important way for Reddit users to participate in the IPO is through a display plan (DSP), similar to the model used. by companies like Airbnb and Rivian to reward customers. Approximately 1.76 million shares (8% of the public) were distributed by DSP based on user reputation (as measured by Reddit hash).
However, unlike insiders and early-stage investors who are time-bound, DSP participants are free to sell their investments immediately. This change allowed some Reddit users to take advantage of the product early; one user reported a profit of $20,000 shortly after the IPO.
While some users prefer to make a profit quickly, others express their intention to keep their products for a long time. Looking back on their interactions with the platform over the years, Reddit users see the IPO as a unique opportunity to reap financial rewards from their participation in the community.
A Reddit discussion takes place on the Wallstreetbets subreddit, known for its role in the 2021 meme stock event. Beginning of public offering. Despite concerns about potential impact, Reddit CEO Steve Huffman emphasized the authenticity of the community and increased the appeal and importance of the platform as digital home users.
Wallstreetbets’ Reddit Users shared their post-IPO experiences with many surprises and the satisfaction of financial rewards for their participation. However, amid the excitement, some users warned against making hasty decisions as they thought the market would not change in the coming days.
This IPO is a testament to Reddit’s unique community-focused approach, ethos, and ability to help people financially through collaboration, as Reddit users continue to discover the power of investing in the platform they call home.