If the market for initial public offerings recovers in the new year, one company that aims to go public early on is Reddit. An IPO will put the spotlight on the prospects for Reddit’s advertising business, which has fallen short of ambitious growth targetsoutlined by executives two years ago. ...
The difference with Facebook is that it is a public company, so it does have to grow every year to have value for investors.
Reddit doesn’t. It’s existing private investors can splot the profit and be just fine. They just want a huge payout that will only come from an IPO.
And the issue with consistent growth in billion dollar companies is that it’s not sustainable. We can’t just keep pilling on profits on top of profits to sate investors insecurities.
These morons will try though, their strategy invariably seems to be building the Jenga tower as high as possible, thinking they’ll be “quick” or “smart” enough to sell their shares before it tumbles.
It’s gambling, but with people’s livelihoods.
I can’t wait for all the news articles about the massive layoffs at Reddit, though it will be sad to see the massive droves of employees shuffling out the door with their personal effects like they did when the Enron scandal broke.
I can’t wait for all the news articles about the massive layoffs at Reddit, though it will be sad to see the massive droves of employees shuffling out the door with their personal effects like they did when the Enron scandal broke.
Are you not aware that public companies split the profits too? They do not need to grow to have value for investors.
Not all of them do that. There are growth stocks and dividend stocks. Growth stocks typically don’t pay dividends, but instead reinvest the dividend back into the company. Amazon, Alphabet and Berkshire Hathaway don’t pay dividends.
Of course not. But they can, whenever they choose to. Parent comment said they have to grow since they are public, unlike private companies like Reddit.
Yeah tell it to the shareholders