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submitted 2 months ago by [email protected] to c/reddit
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[-] mesamunefire 225 points 2 months ago

"Earlier this week, Reddit disclosed in a corporate filing that CEO Steve Hoffman sold 500,000 shares, and Reddit COO Jennifer Wong also disclosed that she sold 514,000 shares."

If they believed in the platform, they would hold. Yeah looks like they are looking for bag holders.

[-] [email protected] 71 points 2 months ago

I think it matters more what percent of their holdings they sell rather than the amount they sell.

[-] [email protected] 100 points 2 months ago

The COO holds 1.4 million now, so she dumped 25% of her shares

[-] [email protected] 28 points 2 months ago

To be fair (and you can probably see by my username I don’t like reddit anymore), I think it makes perfect sense to dispose of a fair portion of your shares in this situation. Firstly, these asshats get paid part of their salary in shares, it’s natural to want to get more security on part of your income. Secondly, with how hard the price rose in the first couple of days, it makes sense. But people are welcome to disagree, of course.

[-] [email protected] 25 points 2 months ago

How does that respond to the original idea, that is:

if they believed in the company, they would hold their stock.

You are not a genius for selling your company's stock after IPO, you are a grifter. Doesn't matter how many voting shares they have, doesn't matter how much more money they need - they do get paid in cash too, and they can borrow against the stock.

So they sold out. Fuck them both for that.

[-] [email protected] 6 points 2 months ago

The point would be to diversify assets. You don't want to gamble everything on the hope the thing you believe in is successful. Not that I think they believe in the platform, but it is probably a smart idea to diversify no matter what. 25% of your shares does seem like a lot though.

[-] [email protected] 2 points 2 months ago

If they sold at $50 a share, they pocketed over $25M each. Even after taxes, that is more than enough to live comfortably in any region's cost of living.

That's not diversifying. That is greed.

[-] [email protected] 1 points 2 months ago

Them not selling isn't any more greedy. No matter what, they own the value of the stocks, whether they liquidate them or not. It's fucked up that anyone gets paid that amount in general, but they did and it's theirs. I don't know what you people would want from them. Isn't holding onto the shares hoping the value goes up even more greedy?

[-] [email protected] 1 points 2 months ago

They get paid in cash ffs.

You sell stock when you think it's overvalued.

[-] rezifon 3 points 2 months ago

Or you sell stock when you need to rebalance. Fuck spez, but selling 25% at IPO seems sane and reasonable to me.

[-] [email protected] 6 points 2 months ago

if they believed in the company, they would hold their stock.

The COO holds 1.4 million now, so she dumped 25% of her shares

[-] [email protected] 10 points 2 months ago

Selling quarter of your stock AT THE FUCKING IPO is a shame. I can't believe people are defending that.

And I suspect they can't sell the rest as easily as the A shares.

[-] [email protected] 5 points 2 months ago* (last edited 2 months ago)

I have nothing I'm willing to defend about Reddit management, I love the idea that they will end up penniless one day (though I'm sure that will not happen.)

I just don't think selling off 25% of one's shares (necessarily) means what has been suggested.

[-] [email protected] -3 points 2 months ago

What would you agree means that they don't have faith in their business?

[-] [email protected] 2 points 2 months ago

Selling everything = I have no faith

Keeping everything when these shares represent almost your entire net worth = I know with 100% certainty that this business will grow

Selling off 25% = I believe in the company, but I also acknowledge that there are many variables outside of my control that can affect the success of this company and I don't want those to have huge negative repercussions on my life.

[-] Illuminostro 5 points 2 months ago

That's SOP for tech companies.

[-] [email protected] -2 points 2 months ago

And how does that go against the "they don't have faith in their business" argument?

[-] [email protected] 3 points 2 months ago

Imagine talking about faith in that situation. If you really think faith is a good base for financial decisions you better keep far away from the stock market.

this post was submitted on 29 Mar 2024
845 points (98.3% liked)

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