News and Discussions about Reddit
Welcome to !reddit. This is a community for all news and discussions about Reddit.
The rules for posting and commenting, besides the rules defined here for lemmy.world, are as follows:
Rules
Rule 1- No brigading.
**You may not encourage brigading any communities or subreddits in any way. **
YSKs are about self-improvement on how to do things.
Rule 2- No illegal or NSFW or gore content.
**No illegal or NSFW or gore content. **
Rule 3- Do not seek mental, medical and professional help here.
Do not seek mental, medical and professional help here. Breaking this rule will not get you or your post removed, but it will put you at risk, and possibly in danger.
Rule 4- No self promotion or upvote-farming of any kind.
That's it.
Rule 5- No baiting or sealioning or promoting an agenda.
Posts and comments which, instead of being of an innocuous nature, are specifically intended (based on reports and in the opinion of our crack moderation team) to bait users into ideological wars on charged political topics will be removed and the authors warned - or banned - depending on severity.
Rule 6- Regarding META posts.
Provided it is about the community itself, you may post non-Reddit posts using the [META] tag on your post title.
Rule 7- You can't harass or disturb other members.
If you vocally harass or discriminate against any individual member, you will be removed.
Likewise, if you are a member, sympathiser or a resemblant of a movement that is known to largely hate, mock, discriminate against, and/or want to take lives of a group of people, and you were provably vocal about your hate, then you will be banned on sight.
Rule 8- All comments should try to stay relevant to their parent content.
Rule 9- Reposts from other platforms are not allowed.
Let everyone have their own content.
:::spoiler Rule 10- Majority of bots aren't allowed to participate here.
view the rest of the comments
"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.
I think it matters more what percent of their holdings they sell rather than the amount they sell.
The COO holds 1.4 million now, so she dumped 25% of her shares
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.
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.
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.
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.
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?
They get paid in cash ffs.
You sell stock when you think it's overvalued.
Or you sell stock when you need to rebalance. Fuck spez, but selling 25% at IPO seems sane and reasonable to me.
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.
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.
What would you agree means that they don't have faith in their business?
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.
And how does that go against the "they don't have faith in their business" argument?
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.
No, she held almost 2m, sold 25% and has 1.4m in remaining stock.
I deleted my comment because I realized my mistake.
I don't know how much of a bag holding exercise it is instead of a "treat yoself" moment. Half a million shares at $50/share is $25 mil, minus 50% taxes is $12.5 mil.
That isn't that much money in the bay area. Don't get me wrong. It's a lot. But that's just a $4 million house with another $1 million in furnishings, and I'm guessing a nice car or two. Take the other $6 mil and invest in a diverse portfolio. They've basically sold their stock so they can square away their personal lives.
Won't somebody think of the poor shareholders.
When I treat myself, it's to a takeaway meal that's like $20. Reddit has "never made a profit"™. Siphoning $16mil out of it on day one is obscene.
In what way do you think they've siphoned $16mm out of Reddit?
Awarded themselves shitloads of stock, then sold a quarter of their shares each as soon as humanly possible. That money is not being invested in the company, it's going straight in these individual's pockets.
I wasn't trying to make a "won't someone think about the shareholders" argument. Thanks for the strawman.
Really the gist of what I was after is "you'd do the same in their position". $12.5 mil is a lot, but we're not talking about $12.5mil/year. Its a one time sale. Someone that earns $100,000/yr just saw 125 years of income materialize in a couple seconds. But if you had the same opportunity, you'd probably do the same. If you would instead donate it to charity, please let us know which charities you'd donate to.
Fair enough, you didn't say you condone it. But your comment does read with much more support than I would offer. And asking me which charities I'd donate to... ha! I don't see why that's relevant. Maybe I would do the same, but I don't already have an $800,000/yr base salary.
More relevant: this windfall would be 250yrs income for me. And on that income I already do donate to charity (albeit probably about 2% of my earnings). If this chump followed my percentage they would be donating 6 whole years worth of my salary on this windfall (plus 1/3 of my salary per year).
The point is "treating yoself" to $12mil after tax is absolutely obscene whatever way you look at it. Not to mention still sitting on 3x more than that.
That's not how stocks work. Share value doesn't go to the company unless the company sells shares of itself that it owns. It also doesn't lose money from share value unless it buys shares. The value of shares goes to the shareholder when sold, and it comes out of the wallet of the buyer.
It's a show of a lack of faith maybe, but it doesn't effect the company at all except for the effect on stock value from selling if the company also decides to liquidate shares too.
Share prices don't only fall if the company liquidated stock. They will also fall from something like a mass sell-off because lower and lower prices will be commanded to sell large volumes of stock.
You know, like the one in the article that talks about the 25% drop in share value.
Yeah, I mentioned selling dropping the price, but the price doesn't effect the company except for the stocks the company itself sells. Having an extremely high or low stock value doesn't matter if the company isn't selling stocks. It's only an indication that the company is doing well or poorly.