From Hating Reddit IPO To Shorting The Stock: A Polarizing Debate Emerges Among Redditors

The platform that prides itself on user-generated content and vibrant community interactions is now facing scrutiny as Redditors openly express their reservations about the company going public.

A lot of Redditors hate the Reddit IPO | Reddit warned us that its users were a risk factor, and boy do they sound excited about shorting its stock.
byu/mepper intechnology

User u/mepper initiated the conversation with a post titled “A lot of Redditors hate the Reddit IPO,” emphasizing the widespread sentiment among users. The responses to this post reveal a multifaceted critique of Reddit as a business and its decision to enter the public market.

Five Issues Raised By Redditors

1. Unpaid Moderators:
   • AuthorNathanHGreen highlights the dependence on unpaid moderators to maintain the vast and diverse array of subreddits. This, coupled with potential copyright issues, raises concerns about the sustainability of Reddit’s content moderation model.
2. Lack of User Loyalty:
   • The sentiment that users are not committed to the platform, coupled with the belief that Reddit lacks a unique selling proposition, challenges the platform’s ability to retain and engage users over the long term.
3. Financial Viability:
   • The fact that Reddit has never turned a profit raises doubts about the company’s financial sustainability. Redditors express concerns that potential profitability might compromise the user experience, which is already considered marginal by some.
4. Copyright Issues:
   • The observation that news articles are often posted in the comments section poses a potential copyright challenge for Reddit, particularly as a publicly listed company.
5. Purpose of Going Public:
   • Redditors question the motivations behind Reddit going public, suggesting it may be more of a cash grab for ownership rather than a strategic move to enhance the platform.