this post was submitted on 23 Feb 2024
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Reddit Warns That r/WallStreetBets Could Wreak Havoc on Its Stock Price::In its IPO documents, Reddit said the price and volume of its stock could “experience extreme volatility for reasons unrelated to our underlying business.”

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[–] [email protected] 26 points 8 months ago (2 children)

I'd stay away from it entirely. If the total valuation is only a few billion, there's people and organizations that can easily keep the price artificially inflated if they want to kill off some short sellers. And no one will step in to change the rules to save them in this case.

I think the price will go down in the long term, but it's completely unpredictable in the short term. Especially if WSB vocally tries to take one position. I bet there's some big money that still wants to hurt them after the whole GME thing, even though I think most of WSB that tried to get into that also lost money.

If you must get your feet wet, my guess would be that the opposite of what the sentiment of WSB is will make money if you time it right and get out before they realize their losses or their options expire.

[–] [email protected] 13 points 8 months ago

And whenever you're trading options for shits and giggles, remember that the market can stay irrational far longer than we can remain solvent.

[–] [email protected] -2 points 8 months ago (1 children)
[–] [email protected] 1 points 8 months ago (1 children)

You don't think wall st would enjoy short squeezing WSB if they see shorting a particular stock is popular on there?

[–] [email protected] 0 points 8 months ago

ah it doesn't matter, at the end of the day it's all blood money laundering...