Reddit Migration

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Fidelity has cut Reddit valuation to $5.5B from $10B (techcrunch.com)

submitted 1 year ago* (last edited 1 year ago) by [email protected] to c/[email protected]

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[–] [email protected] 4 points 1 year ago (1 children)

Rumor has it that Reddit wants to IPO at $15 billion. Hard to do that when you were worth $10 last year and are worth $4.5 this year.

[–] cantstopthesignal 2 points 1 year ago (1 children)

There are plenty of rubes that have heard of reddit, unlike a lot of other IPOs. They will offer at an insane premium that the general public will buy into, then it will crash once the restricted period ends.

[–] [email protected] 1 points 1 year ago

I'm not a finance guy, so I really have no idea. But my gut tells me that if Fidelity values Reddit at $5 billion, other financial institutions probably peg it around the same amount. And the recent press around Reddit that people might have heard about is decidedly negative, so I don't know who would think it's worth that much. Also not to forget, lots of people knew about Facebook and it's stock didn't trade above it's IPO price until a year after it opened.

But again, I could be totally wrong. As H. L. Mencken wrote, "No one in this world, so far as I know ... has ever lost money by underestimating the intelligence of the great masses of the plain people."