- Wall Street Bets looks set to mark Reddit’s IPO by making it “the biggest meme stock ever.”
- The group behind this year’s meme stock frenzy discussed pumping Reddit’s stock once it goes public, in a similar mania that sent GameStop shares soaring.
- Not all members were happy, as some said upcoming changes to the site would mean Reddit wasn’t the same.
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Members of the 11 million-strong Wall Street Bets community have found their next meme stock target after Reddit confidentially filed paperwork with the Securities and Exchange Commission to go public.
Known for its heavy usage of profanity and memes, WSB had mixed reactions to Reddit’s announcement that it plans to list on the stock market. But most joked about wanting to pump the platform’s shares once it goes public.
“If Reddit doesn’t become the biggest meme stock ever I’m going to be severally disappointed with all of us,” one subredditor ‘HoltzmaN’ said.
Retail investors on the group were key drivers behind the meme stock frenzy in January, banding together to boost the shares of heavily-shorted stocks like GameStop and AMC in defiance of hedge funds and investing norms.
‘RenewAi’ predicted Reddit would become an “instant meme stock,” while ‘porcupineapplepieces’ suggested “If we all bought shares we could control Reddit. Just sayin.”
But some members weren’t too happy. One user predicted “mass censorship,” while others pointed to commercial ads and changes to the site as indicative of a remolding of the brand.
Another user said: “That is pretty depressing to hear. Reddit has been the place I call home online for a long time and this means a lot of changes are going to happen, probably for the worst. Nothing lasts forever I guess.”
Founded in 2012, the Wall Street Bets subreddit is a movement aimed at empowering the “little guy” investors of the world against Wall Street’s mighty financial institutions and hedge funds.
“When r/WallStreetBets was first created, the idea was to bring the fight to powerful institutions and tap into the subreddit’s collective wisdom to outperform the pros in the market,” Jaime Rogozinski, founder of WallStreetBets, has previously said.
Reddit didn’t offer much detail about its upcoming IPO, saying its offering size and price range haven’t yet been decided. “The initial public offering is expected to occur after the SEC completes its review process, subject to market and other conditions,” the company said in a blog post.
The company was valued at $10 billion in a private fundraising round in October, and Reuters reported it’s eyeing a $15 billion valuation by the time it lists.
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