Much has been made of the big “pop” that IPO Reddit had on Thursday, as if that somehow heralded a new era if initial public offerings. Meh, I don’t think so. Reddit has done nothing but lose money since its creation, with cumulative losses approaching $800 million (but at least their CEO is nicely compensated, whose last annual salary was something like $120 million). Simply stated, it’s a garbage business, and some poor schlub is already down 20% from his purchase on Thursday.
As the mass media tries to shove this down people’s throats as great news, I would quietly point out that the likes of Yahoo, Reddit, and Snap sort of spoil the track record of these giant “pops”, to say nothing of the fact that, in virtually all these cases, the stocks had an enormous wipeout before they recovered. I’ve been around the online world longer than most traders have been alive, and although I enjoy peeking at the goons on /wsb on a daily basis, I think RDDT is going to be a dog, and not in a good way.
