Reddit shares plunge almost 25% in two days, finish the week below first day close
Ranvier @ Ranvier @sopuli.xyz Posts 9Comments 928Joined 2 yr. ago
Ranvier @ Ranvier @sopuli.xyz
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There's a lot of confused people in these threads. Steve Huffman sold 500,000 shares as part of the ipo, so they were some of the shares sold immediately before they opened on the market (at the about $30/share price). He still holds 4.1 million shares. Other insiders sold some shares as well. Some shares were created to raise money for the company. Once the ipo actually happens and the price for all those shares is negotiated with the bank assisting and all initial buyers, then it begins trading on the open market. At that point they are in a lockup period, and they can't sell anything for about 180 days. All of this is in sec filings, where you can see the source of all the shares that were part ot the ipo.
Look I hate Steve Huffman too, I'm here on lemmy after all. But this is a grossly over valued tech stock and there hasn't been many tech ipos in a while. It's very not surprising it would start sinking after an initial explosion of buying activity. It's not dropping from insiders unloading stock right now though. They're in lockup.
I've read it like ten times and am still a little confused, it is about as confusingly worded as possible I think, haha.
I'm not an expert, I could be wrong or misreading it. The wording isn't straight forward. This is the section that mentions it:
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”): (1)offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right, or warrant to purchase, lend, make any short sale, or otherwise transfer or dispose of, directly or indirectly, any shares of our Class A common stock and securities directly or indirectly convertible into or exchangeable or exercisable for our Class A common stock; (2)enter into any swap, hedging transaction, or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of our Class A common stock, whether any such transaction described above is to be settled by delivery of our Class A common stock or such other securities, in cash or otherwise; (3)publicly disclose the intention to take any of the actions restricted by clause (1) or (2) above; or (4)make any demand for, or exercise any right with respect to, the registration of any shares of our Class A common stock or any security convertible into or exercisable or exchangeable for our Class A common stock.
If you control f to "lock-up" there's more context too.
Yeah, I mean ipo's in general are definitely a rich get richer kind of thing that screw over retail traders, but I don't think there's anything particularly unusual about this one.
Bring in the guy that fixed the first one with dark arisen please.
You're exactly right, he sold off all his class a shares as part of the ipo, though he still retains 4.1 million class b shares that have greater voting rights. You can see who sold shares as part of the ipo with the sec filings:
In the table there in the middle you can see how many class a shares were sold as part of the ipo and where they all came from, 500,000 were from huffman. So all the people in the table there sold at the ipo price (or they were new shares created by the company to raise money), they were not sold at the price it was later trading at in the open market. They were already bought by then as part of the ipo. He wouldn't have been able to do that anyways, I see a lockup period of 180 days listed.
His 500,000 class a shares were a part of the ipo offering, so they were directly sold with the ipo. He still has 4.1 million class b shares which have greater voting rights than class a shares. So the people in this thread saying he's sold all of his stock aren't correct, though he did sell all of his class a shares that are being traded in the public market for the ipo. It's all in sec filings as part of the ipo. You can see here who sold as part of the ipo and how much, and where all the ipo shares are coming from. Some were created to raise money for the company, others were already existing shares being sold by those who already held shares before the ipo. They wouldn't be able to sell after the market actually opened, that's where lockup periods come in, and it's 180 days in this case. The sale price of these shares was negotiated as part of the ipo before it was trading on the exchange. Now any still held are locked up for that period.
It doesn't, he had like 4.6 million shares before the ipo. The 500,000 number sold is just his class A shares. He'll still have 4.1 million shares of class b stock after this it looks like. The class b stock has ten votes compared to one vote for class a stock for any shareholder votes I believe. So selling only his class a shares won't change the percent voting control of the company he has by much. The person you're replying to is confused about how many total shares he has. I don't think the class b shares are being openly traded though, I think the ipo is just offering class a shares, which is what's causing the confusion here. He sold almost all of his class a shares, but still has plenty of class b.
I agree with you on all points, except judge shopping in this case. The case was filed by prosecutors, not the defense. Defendants can't really judge shop a criminal case (beyond choosing to live in Florida I suppose, or the fact that Trump appointed hundreds of judges himself). She was technically selected by random chance out of that district's pool, though because of various factors the pool being picked from was pretty small, so there was a high chance of getting her. More details here if interested:
https://www.nytimes.com/2023/06/10/us/politics/judge-aileen-cannon-trump-documents.html
Hence how she ended up with both Trump's stupid fight against the search warrant as well as the actual criminal case. So there wasn't judge shopping of the traditional sense, like patent cases always going to that particular district in Texas that tends to rule favorably for patent holders.
Weird, it skips right from the 13th amendment to the 15th in this version. And I can't find the emoluments clause anywhere.
Yes, but the state prosecutor can chose to extend a deal contingent on admitting guilt.
Birds of a shitfeather flock together.
24 years ago? Try 150 years ago.
https://en.m.wikipedia.org/wiki/Comstock_laws
One of these laws was cited.
Luckily it looks like the supreme court is just gonna shoot down the whole case rather than open the box of worms of courts overturning fda approvals.
And if it's dragons dogma 2, for a few sweet sweet fps.
Doctors are paid more, but still a small slice of healthcare costs. Doctors in the US working entirely for free would barely make a dent. All administrative costs, including doctors and nurses salaries, but also our bloated health care administration, add up to 8%. A lot of the extra administration costs are also things like all the staff needed just to interface with the giant mess of different payers including multiple private and government programs, all with different documentation and billing requirements.
The insurance companies, pharmaceutical companies, medical device and equipment companies, and private equity owners of hospitals and practices who are all reaping windfall profits at the expense of patients love to direct the blame to doctors though.
This is bizarre, I looked and Rochester Minnesota has multiple high speed providers, including two that offer fiber.
And the isp you have is a wireless isp that doesn't even list Rochester as within its coverage area, they're intended to serve more rural areas west of the city. On their map it gets close to but not quite in Rochester, but maybe they're still able to access it (slowly) since it's a wireless provider.
I'm guessing this is a whoever owns your Airbnb problem rather than a Rochester Minnesota problem. I don't understand why they would be paying for this rather than use any of the readily available high speed options there.
I guess the fey and intellect devourers will just need to team up to take them down with combined int/wis/charisma saves.
I wouldn't have wanted to buy anything either. It's actually slightly more progressive than most ipo's in that sense though since it offered a chance to buy shares directly, but that's not really saying much. A true public offering would allow anyone to place orders as a part of the initial sale. Usually just large financial institutions have the chance and then the price is very inflated by the time most retail traders would be allowed to buy. If we really want to help the rampant wealth inequality in the economy too, there should me some mandated equity that goes to employees whose labor built the company so everyone, and not just the board and a few venture capitalists, can profit from the stock sales. Which I guess is a roundabout way of saying workers should own the means of production. It doesn't make sense to reward only so few for the work and ideas of so many individuals. And I think it's a huge inefficiency in the economy that is detrimental no matter your view point (unless you're a billionaire company founder who doesn't care about the country, economy, or world as a whole I guess).