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The Reddit IPO: too good to be true?
, with (the high end of the range) was apparently a success: .
However, things may not be what they seem. Some of us had already warned that Reddit had reached its high water mark, and now analysts such as or are striking a note of caution, which coupled with the speed that many of the company’s management team have since sold their shares, .
Reddit CEO sold half a million shares, almost 40% of his stake, and the COO sold another 514,000, which is an even larger percentage. This sudden increase in the supply of shares in a newly listed company logically sent the price tumbling, and also illustrates a huge disconnect between management and the objectives they state in their supposed strategy: why sell so many shares if the prospects are as bright as they say they are?
