A lot of Redditors hate the Reddit IPO | Reddit warned us that its users were a risk factor, and boy do they sound excited about shorting its stock.::Reddit seems like a likely candidate for a meme stock. But the actual reaction suggests that r/WallStreetBets isn’t going to send the stock to the moon.
Reddit warned us that its users were a risk factor
This means they’re positioning themselves solely as a source of training data. If their users are a risk factor, not the entire product, they’re completely uninterested in maintaining a user base and think that what they have is all they’ll ever need to sell.
Reminder that shorting is a high risk play and you should never make investment decisions out of spite.
Playing the stock market at all is a form of gambling. You should never gamble money you aren’t completely willing to lose.
And with shorting there’s no upper limit to what you can lose.
Not true
It is true.
You buy a stock for $30. At worst it gets to $1 and you lose $29.
You short a stock for $30. There is no upper limit to how high it can go.
No. There are lots of ways to short a stock which just means betting that a stock will fall. If you buy Puts you go short, you can only lose the money you spent on the Puts. What you are talking about is unhedged short selling but that is far from the only method to short a stock.
Yeah, if there’s a “Superstonk” style event, the shares might jump to $1000 per share.
Say you shorted 100 shares. If you shorted it at $30, the absolute maximum you could make is just under $30 per share, or $3000. But, if it jumps to $1000 per share, you would lose $970 per share, and owe $97,000.
Maybe it’s not technically possible for there to be “no upper limit” to what you could lose, but you could easily lose many multiples of the maximum possible gain.
In theory that’s true but you’ll get liquidated at some point.
It will be about a week until options come out. A put option simulates renting 100 shares of a stock over a time period, and collecting the difference between the strike price you pay for and the lower price if there is one. If the price ends higher, you lose the rent you paid.
A reminder that the stock market and any kind of high level money market of any kind including digital money … is a rich man’s game where poor are by design destined to lose.
Yeah, well even some rich people are bored redditors.
This is a gross over simplification. Yes, rich people can have higher risk tolerance, but that doesn’t mean people shouldn’t be going long on index funds and otherwise safe, low risk investments for retirement with what they can afford to.
And then listen to every asshole yell ‘but think of their retirements!!1!’ when the stock market shits itself.
Fuck this system. It’s original intent is way long gone, and we should stop pretending it’s helping anyone but the rich.
Yes, rich people can have higher risk tolerance
It’s not just risk tolerance. The very rich can manipulate the market in ways that the poor can’t.
You don’t need to manipulate markets to dollar cost average the S&P500 for 40 years and retire. This is a get rich slow scheme that’s worked since the inception of index funds.
Yeah, and some rich people may do that. But, other rich people aren’t satisfied with the returns of an index fund, so they’ll manipulate the markets to get higher returns.
I don’t know what you’re trying to get at. The original comment stated the stock market is a rich man’s game that poor men are designed to lose. I pointed out that anyone with extra income can take advantage of the stock market and not lose. Just because rich people can take advantage of market manipulation doesn’t mean poor people have to lose.
The market can remain irrational longer than you can remain solvent.
Holy shit put that on a t-shirt
It’s a Keynes quote and there are already tons of shirts
Not likely Keynes according to Quote Investigator.
Just… perfect
100%, this is a trap being set for retail investors… not touching this even if I had a 1000ft pole.
What if you had a 1001ft pole?
That’s the whacking pole
Then it would be called buying puts instead of shorting
If I had a 1001 foot pole I wouldn’t be browsing Lemmy on a Saturday night.
Instructions unclear, purchased Lemmy stock using Amazon gift cards
Kitboga, this you?
¡Alert! Your Lemmy account may be suspended in 2 days unless you send Google Play gift card codes to me right now!
Ohh dear
Sorry, I only have Steam Gift cards… 😕
DO NOT REDEEM!!
I think this company is deeply and uniquely incompetent and will never deliver on its objectives.
No you should make investment decisioms purely for the fun of it.
Also, WSB has been wanting to short reddit for literally years, so this is barely news.
To quote XKCD’s “Engineer Syllogism”:
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I am good with numbers and math.
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The stock market is mostly numbers and math.
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Therefore, I would be – wait, where did all my money go?
Second premise is false
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It would be hard to get that many separate entities to all start shorting a stock all at the same time. Especially on a well known entity that may have quite a bit of action.
Here is an alternative Piped link(s):
Piped is a privacy-respecting open-source alternative frontend to YouTube.
I’m open-source; check me out at GitHub.
Fuck Steven Huffman.
Fuck spez
Advertise Lemmy!
Lemmy needs a lot of ironing out to be acceptable for the masses.
If the masses don’t come here, that’s fine. For now, we just can just take the people who post and comment thoughtfully.
Leopards ate my face. They are acting like this is a new betrayal that needs stopping. These are the same people who were telling us the 3rd party app changes aren’t a big deal.
And while Huffman now thinks that Reddit as a corpus of training data for AI is valuable, he let his board member Sam Altman siphon off Reddit data for free; Altman was, and still is, the CEO of OpenAI. Altman’s also Reddit’s third-largest shareholder and owns more than twice as many shares as Huffman. Altman was the CEO of Reddit for eight days.
Say what now
Huffman also made $193 million bucks, according to the article.
How much is a dollar buck in USD?
About 1/10 of a banana
It’s just shy of a bison dollar
It’s equivalent to four quarter dollar bucks.
1 Buckaroo
About a hundred Stanley Nickels.
Altman was the head of Y-Combinator, Reddit is a Y-Combinator project.
Holy crap I did not know that! This is huge
Does anyone remember this?
Reddit hackers demand $4.5 million ransom and API pricing changes
Still waiting – and hoping – for the other shoe to drop.
Nobody’s doing shit with this stock.
It’s all a manufactured cover story for hedge fund/institutional manipulation to blame retail for volatility and attempted fleecing.
Reddit is getting worse every day, for a while it was worth it, but sooner or later, everyone reaches that point where the cons outweigh the benefits
I still feel surprised that people remain on Facebook and am slowly beginning to feel the same about Reddit.
*looks at c/WallStreetBets and puts on sunglasses*
Pump it.
Theres a lot of smart financially minded people in these comments. any advice for how someone can get started with the market, and investments in general?
Do you have retirement funds set aside an invested? If not, setting up or managing your own retirement account could be a good primer.
Don’t try to overthink the market. If you are wanting to invest with no plans to spend that money within say 3 to 5 years, just by low expense ratio S&P500 tracking ETFs. My goal isn’t to beat the market, just ride with the market benchmarks as best as possible.
My goal isn’t to beat the market
Yup. Nobody consistently does. If there exists some secret sauce to beating the market you’re certainly not going to find it on lemmy. Buy index funds and forget about them.
Set up Robin Hood or Acorns and drop like $100 a month into random stocks. NVIDIA is doing really well because of AI and is growing in leaps.
In my opinion you are describing gambling not investing.
So people shouldn’t get into low-stakes investment for some reason? Do you think that most poeple in the US have the money to do higher-level investment?
Low risk, not low stakes. Choose index trackers, not individual stocks.
If you want to look at investments, DO NOT buy individual stock. DO NOT short stocks. These are gambles that people play, where you try to guesstimate what the general market thinks about future prospects of a company. Many stocks that over-perform, do not do so because the company is doing well, they over-perform because a large percentage of investors think it might do well in the near future.
Step 1 is just building a stable budget for your household. Pay off debts, earn more than you spend, build an emergency fund. Many companies have savings accounts that you can safely put money into that you can pull out at a moments notice without taking a loss because of a dip in the economy. There’s no reason to look at anything else if you have large amounts of student loans, credit card debt, or car payments you’re working off.
Step 2 is decide what you want to save for - retirement, a home, etc.
Step 3 is start investing towards that goal. Use investment portfolios that match what your Step 2 goal is.
Step 4 - What country are you from? Because the following advice is for Americans:
If you want to actually earn money, you do it slow and steady. Invest in whole market funds, like VTSAX or similar. They are called “whole market index funds” where you invest a small amount of money into an index fund and it grows along with the entire market. You would put money into a 401k, IRA, or other tax advantaged account, and put that money into a whole market index fund.
IF you have thousands of dollars that you are willing to just throw away and it doesn’t matter to you, THEN you can start buying stocks like Reddit, TSLA, or whatever. But that money shouldn’t be considered an investment.
My advice is to read the simple path to wealth. I listened to the audiobook, its short and sweet and entertaining.
The gist: Nobody consistently beats the stock market (not even the people being paid to do so), don’t try, it’s gambling. Buy index ETFs when you have extra and hold on to them until you retire. Don’t time the market, dont overthink it. Buy and forget. There’s a part of the book where he says that the best group of investors were dead people and the second best were people who forgot about their investments. Idk if it’s true but it stuck with me.
Spend a few hours learning about tax differed savings accounts or whatever your country offers and take advantage of them.
In my experience, being investing intelligently is really fucking easy and really fucking boring.
Add a bit about moving from stocks to bonds as you approach retirement to top off your advice.
Also, pay off debt before you invest.
Tbh it’s not very hard, just get a brokerage account with someone like fidelity or even Robinhood. As far as picking stock, there’s no correct way that’s applicable to everyone. Oftentimes people who obsess over crunching numbers and doing lots of research, will rarely make more than if they just bought index funds.
Long-term investments are a lot more about how much and how long you can invest, vs what you invest in. In general, I tend to buy stock in companies who I believe to be undervalued, particularly if it’s been devalued in reaction to the media and not something like a bad quarterly.
Oftentimes people who obsess over crunching numbers and doing lots of research, will rarely make more than if they just bought index funds.
I’m pretty sure like 95% of people who are paid to beat the market perform worse than index funds over any period greater than 5 years. I’m procrastinating at work so I’m going to be one of those annoying people that tell you to go research it yourself, but ya. From everything I’ve heard essentially nobody beats the market over long periods of time, it’s a losing battle. Just buy index funds and wait.
It’s boring but it’s the smartest thing to do.
like 95% of people who are paid to beat the market perform worse than index funds over any period greater than 5 years.
Not too crazy to imagine, especially with how the markets have been behaving recently. Index funds have been having crazy returns the last year or so.
For example Boeing. But if you get a brokerage account and they recommend stuff but they are your age or younger, you should definitely listen with a grain of salt. I lost a good 5 years of income listening to the guy from fidelity. “It’s definitely time to invest!” In my head I was like ‘no way’. But they got my wife to convince me. And sure enough the money was gone in Just a few short months. But then we started to do our own investigation to see if theirs matched ours. Don’t do your own research thinking you’ll beat them, do it to get educated in your investments and to compare…if they seem to be way off, it could be either a great opportunity they know about and you don’t (insider trading lol) or it’s probably pure bullshit. I would say most of time it’s bullshit. How to they make money? Off your losses! Indirectly ofcourse, otherwise it would be robbery.
brokerage account and they recommend stuff but they are your age or younger, you should definitely listen with a grain of salt. I lost a good 5 years of income listening to the guy from fidelity. “It’s definitely time to invest!”
Yeah, never give anyone the ability to completely manage your brokerage account. Most investment brokers are just gambling addicts that get to spend other people’s money. If they are telling you they can get you returns much greater than index funds or a decent ETF…they aren’t telling you of the potential risk.
My advise to younger people is just to take advantage of any tax mitigation like a IRA or 401k, invest in index funds, and most importantly …don’t look at it too much.
People tend to panic when they see a long term investment dip below their original purchasing price, but it’s important to realize that losses aren’t realized until you sell. The market will fluctuate, but the likelihood of a company recovering at some point in the next 20 years is pretty high. Just be patient and don’t buy overspeculated stock.
I finally went back and checked reddit and I received the email too. I laughed as I read it.
I had a good laugh when I got an email through basically offering a preorder of Reddit shares.
never did link my account to an email address. so that’s an email i never got. 🙂
Dont theu just want it to crash hard so they can then buy into it at a cheaper rate.
Why would the price go up?
The only way to make money is sell comments to AI developers, and users hate that.
It’s completely unprofitable and the days of throwing tech bro money into bottomless pits is over
You buy a put option and if it tanks, you sell the put and profit. Doesn’t mean you actually end up with stock in the end. And why would you if you expect it to continue downward? Buying a long position is making the assumption that a stock is undervalued, and I guarantee you, if that stock goes down 90% it’ll still be overvalued.
Like how they did Robinhood stock right
