If that’s not the textbook image of rats leaving a sinking ship, I don’t know what is. “Fuck you. Got mine!”
The price pump that conveniently happened immediately after release sure was nice for Pig Boy Huffman, wasn’t it.
Data on short positions become available tomorrow (April 9th) as referenced in this article so the roller coaster is only just getting started. It’s gonna get wild once the market realizes what a house of cards Reddit is built on.
It is when you consider that it was roughly 80% of the stock they held.
Is there a source for that? Don’t get me wrong, I think reddit is over valued as an unprofitable company but the 80% number smells wrong.
According to the article he sold 500k shares but according the S-1 he was granted 662,447 as a bonus for achieving above a 5B market cap (he did, it was a low target), that’s on top of the 4.6M shares he holds in mixed class A/B.
For someone paid so much in stock it’s not uncommon to want to gain some liquidity and lock in some earnings.
https://www.sec.gov/Archives/edgar/data/1713445/000162828024006294/reddits-1q423.htm
This figure doesn’t really pass the smell test, given that it’s been repeated to death that the CEO makes $193 million, with the vast majority being stocks. Can you source the claim?
Their market cap today is something like $7.5bn?
$40m would be like 0.5%
This is not news as much as we all want it to be, they definitely have much more than that, even if it’s tied up in an RSU scheme or something.
So what do you do when you have stock in a private company while still working at it. I imagine if you are heavily compensated with equity you will take going public as an opportunity to offload and diversity.
They’re just being capitalists. Having 80% of your portfolio in a single entity isn’t smart.