As Reddit prepares to go public, the social-media company issued an unusual warning to investors.
AdvertisementGameStop, AMC, and other companies saw huge swings in their stock prices starting in 2021, thanks to chatter on social-media platform Reddit.
In lawyerly language, Reddit wrote that individual ("retail") investors may home in on the company's stock.
AdvertisementReddit S-1 cautions that retail investors could make the stock volatile Reddit S-1 screenshotReddit is offering its most frequent users a chance to buy into the IPO alongside institutional investors.
Reddit users, meanwhile, gather on WallStreetBets (mentioned five times in the S-1) and other subreddits, where many posters are bearish about the company's upcoming IPO.
Persons:
Reddit, Redditors, —
Organizations:
GameStop, Service, AMC, Securities and Exchange Commission