Zinger Key Points
- Reddit opened at $47 per share, eventually topping out above the $57 mark, and early retail investors shared their gains in WSB.
- Retail traders in the WSB subreddit predict a drop in the stock’s price as excitement over its IPO fades.
Reddit, Inc.‘s RDDT IPO rekindled memories of the GameStop short squeeze which originated in Reddit’s WallStreetBets forum, and the infamous subreddit has been in the spotlight as Reddit shares began trading.
Before the stock opened on Thursday, Reddit CEO Steve Huffman revealed in an interview with CNBC that he is a member of r/WallStreetBets and has been reading the comments on the company's IPO in recent weeks.
"Reddit is nothing without our users and communities, and I think that's the beautiful thing about Reddit is they tell it like it is," Huffman said.
In an unusual move designed to show appreciation to the platform's most loyal users, Reddit reserved 8% of its IPO shares, or 1.76 million shares, for "super users" who had until March 5 to pre-register to buy shares in the listing.
WSB Chimes In: The stock opened for trading at $47 per share, eventually topping out above the $57 mark, and early retail investors shared their gains or "tendies' in r/WallStreetBets.
"Really glad that I bought during the early access period. Thank you reddit mods, your free labor has made me much wealthier!," shared u/mo6phr.
"I jumped out at $54. I’d like to give a big shout out to reddit for the $20k profit today," posted u/eurostylin.
Related News: WallStreetBets Top Trending Stocks This Week
Another user who declined the invitation to pre-register for shares posted his regrets:
"So you’re saying if I replied to Reddit’s PM to me a couple weeks ago, I could have bought a s**t load at $34/share, and cashed out now for like 50% gains? WTF was I thinking ignoring it?" posted u/alwaysmyfault.
Looking Ahead: Retail traders in the WSB subreddit predict a drop in the stock's price as excitement over its IPO fades.
"Always, just ride the wave. Insiders gotta dump their bags on the retail exit liquidity, hence the pump. Once they are out, it will turn into a red price-seeking missile straight into the earth’s core, just in time for the insiders to roll their ipo gains into puts. Happens every time," predicted u/bathfinderMcFly.
In true WallStreetBets fashion, users are asking when options trading will be available on Reddit shares. Several users mentioned buying puts as they anticipate the stock's price falling from IPO levels.
"I made $6500 on the IPO. Buying $6500 worth of puts as soon as they are available," said u/perfectm.
Following the IPO, retail investors will be watching to see how the stock performs, voicing opinions and sharing "tendies" in the WallStreetBets forum.
"I’m not touching this stock, but I’m looking forward to watching the show through the lens of this subreddit," commented u/74orangebeetle.
RDDT Price Action: According to Benzinga Pro, Reddit shares fell 8.8% to $46.00 on Friday.
Now Read: Reddit Is Selling Your Thoughts To Artificial Intelligence Firms: Should You Care?
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