Received DSP invitation today. Why I've decided not to participate

[edgsauhngiadrh]

@austinmiles89 The chances of a total loss are nearly zero. The chances of the stock closing below the IPO price in such a strong market are very small.

Thus, if there is no required holding period, there is very little risk to taking shares in the IPO.

A company as popular as Reddit, in a roaring bull market, is a pretty safe IPO bet. As a rule I do not purchase IPOs on the first day of trading and wait for consolidation, but if I can get the shares at the IPO price, it's a no-brainer.

 

[p92]

@corbco I was in until the E*trade require

 

[will2425]

@corbco Reason 2 was my exact reason lol. Do not want to open AND fund an account over at etrade.

 

[brknight]

@corbco Eh it took me a whole 5 minutes to make the account and setup a transfer. All paperwork is electronic. Certainly be lazy while the rest of us make money.

 

[kevinkret86]

@brknight I, too, found it to be surprisingly easy to set up.

 

[marioshroomed]

@corbco Robinhood was extremely hated after that whole fiasco and yet it still popped on IPO. No one knows shits.

 

[corbco]

@marioshroomed Yeah, I'm mentally prepared for a round of coulddawoulddashouldda later this month!

 

[asimplechristian]

@corbco

1. I don't want to give up personal info

 

[sharkofthecovenant]

@corbco Reason 2 is really high on my UGH list. I have enough accounts to keep track of, and if I can't do it through Fidelity, I don't want to.

 

[nhwarmbythefire]

@sharkofthecovenant The Reddit IPO is available through Fidelity. You just can't participate through the DSP on Fidelity so the allocation chances will be different.

And of course - the usual flipping rules would apply.

 

[corbco]

@nhwarmbythefire

The Reddit IPO is available through Fidelity.

Well, yeesssss, so it is. Just got my announcement in the last 30 minutes.

I might have to re-re-consider!

 

[nhwarmbythefire]

@corbco You can't really flip shares in your Fidelity account though. That's sorta one advantage of the DSP.

 

[soojan]

@corbco I got the DSP offer for Reddit IPO a few weeks back and I quickly decided to pass. I’ve been offered DSP participation before for User Testing. I passed on that one too.

Any time a regular Joe like myself gets invited to a DSP I’m super critical of the company and it’s kept me from making bad decisions so far.

Reddit is not a healthy company. Reddit disclosed too many risks. The one that stands out the most, is that Reddit relies solely on free labor for this machines gears to turn. The Mods could organize and shut the show down and any downtime and PR could have profound effects once this company is public.

Reddit is likely working on having AI replace moss but that will be a long way off. The stock will suffer in the near term so there’s no reason to participate now.

 

[naomi96j]

@soojan Disclosing risks are part of an IPO though to shield themselves from future shareholder lawsuits that they didn't disclose things. Given the attention external regulatory scrutiny Reddit has gotten in the last few years, it's warranted to just say everything is a risk. The real value in Reddit, which is sad to say, is the value of information and data to be sold as a knowledge base of sorts. In between the shitposting, a short comment thread of "Why does X do Y?" is a gold mine for Q&A AI training.

 

[vikkydonlad]

@corbco Damn I woulda made you an E*trade account in 2 seconds if I could give you some money to put in for me

 

[gaoman]

@corbco

• 1 I don't think that's true. Per the prospectus:
  
  

  In connection with this offering, we and all of our directors and executive officers, the selling stockholders, and certain other record holders that together represent approximately 82% of our outstanding Class A common stock and securities directly or indirectly convertible into or exchangeable or exercisable for our Class A common stock are subject to lock-up agreements with the underwriters agreeing that, subject to certain exceptions, without the prior written consent of Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC, and J.P. Morgan Securities LLC, on behalf of the underwriters, we and they will not, in accordance with the terms of such agreements during the period ending on the opening of trading on the earlier of (i) the third trading day immediately following our public release of earnings for the quarter ending June 30, 2024 and (ii) 180 days after the date of this prospectus (such period, the “Lock-up Period”)

• 2 lol it's 2024, I'm not sure when you last set up a brokerage account but the entire process but if this is your number 2 reason for not participating then you probably could have kept this to yourself considering it has nothing to do with the DSP or stock itself

 

[jaykay12345]

@corbco This whole Reddit IPO thing reminds me of the quote by Groucho Marx: “I refuse to join any club that would have me as a member”. If this IPO was going to be a huge success they wouldn't be offering shares to us peons. They would keep them all for themselves.

 

[thuppayath]

@corbco I was going to wipe my ass with two wet wipes today but the doodie came out clean so I decided to go with plain toilet paper. Thought the world would want to know this.

 

[resjudicata]

@corbco I got the invite too but now it's not showing up in my notifications or in the banner... how do i go back to the site?

 

[corbco]

@resjudicata Don't know. My email was from ETRADE @ e . etradefinancial . com , will that help you find it?

Gotta edit a few spaces out of that to get past the AutoDeletor, though.