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submitted 8 months ago by L4s@lemmy.world to c/technology@lemmy.world

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.::Reddit seems like a likely candidate for a meme stock. But the actual reaction suggests that r/WallStreetBets isn’t going to send the stock to the moon.

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[-] bionicjoey@lemmy.ca 283 points 8 months ago

Reminder that shorting is a high risk play and you should never make investment decisions out of spite.

[-] billiam0202@lemmy.world 231 points 8 months ago

The market can remain irrational longer than you can remain solvent.

[-] ininewcrow@lemmy.ca 91 points 8 months ago

A reminder that the stock market and any kind of high level money market of any kind including digital money .... is a rich man's game where poor are by design destined to lose.

[-] JDubbleu@programming.dev 21 points 8 months ago

This is a gross over simplification. Yes, rich people can have higher risk tolerance, but that doesn't mean people shouldn't be going long on index funds and otherwise safe, low risk investments for retirement with what they can afford to.

[-] merc@sh.itjust.works 14 points 8 months ago

Yes, rich people can have higher risk tolerance

It's not just risk tolerance. The very rich can manipulate the market in ways that the poor can't.

[-] JDubbleu@programming.dev 9 points 8 months ago

You don't need to manipulate markets to dollar cost average the S&P500 for 40 years and retire. This is a get rich slow scheme that's worked since the inception of index funds.

[-] merc@sh.itjust.works 2 points 8 months ago

Yeah, and some rich people may do that. But, other rich people aren't satisfied with the returns of an index fund, so they'll manipulate the markets to get higher returns.

[-] JDubbleu@programming.dev 2 points 8 months ago

I don't know what you're trying to get at. The original comment stated the stock market is a rich man's game that poor men are designed to lose. I pointed out that anyone with extra income can take advantage of the stock market and not lose. Just because rich people can take advantage of market manipulation doesn't mean poor people have to lose.

[-] msage@programming.dev 11 points 8 months ago

And then listen to every asshole yell 'but think of their retirements!!1!' when the stock market shits itself.

Fuck this system. It's original intent is way long gone, and we should stop pretending it's helping anyone but the rich.

[-] ColeSloth@discuss.tchncs.de 7 points 8 months ago

Yeah, well even some rich people are bored redditors.

[-] NarrativeBear@lemmy.world 62 points 8 months ago* (last edited 8 months ago)

Instructions unclear, purchased Lemmy stock using Amazon gift cards

[-] Rentlar@lemmy.ca 46 points 8 months ago* (last edited 8 months ago)

¡Alert! Your Lemmy account may be suspended in 2 days unless you send Google Play gift card codes to me right now!

[-] NarrativeBear@lemmy.world 44 points 8 months ago
[-] Caligvla@lemmy.dbzer0.com 17 points 8 months ago

Sorry, I only have Steam Gift cards... 😕

[-] GluWu@lemm.ee 23 points 8 months ago

DO NOT REDEEM!!

[-] sarcasticsunrise@lemmy.world 11 points 8 months ago

Kitboga, this you?

[-] debounced@kbin.run 53 points 8 months ago

100%, this is a trap being set for retail investors... not touching this even if I had a 1000ft pole.

[-] OrangeCorvus@lemmy.world 24 points 8 months ago

What if you had a 1001ft pole?

[-] Ringmasterincestuous@aussie.zone 13 points 8 months ago

That’s the whacking pole

[-] WhiskyTangoFoxtrot@lemmy.world 9 points 8 months ago

If I had a 1001 foot pole I wouldn't be browsing Lemmy on a Saturday night.

[-] BakedCatboy@lemmy.ml 8 points 8 months ago

Then it would be called buying puts instead of shorting

[-] refurbishedrefurbisher@lemmy.sdf.org 37 points 8 months ago

Playing the stock market at all is a form of gambling. You should never gamble money you aren't completely willing to lose.

[-] bionicjoey@lemmy.ca 19 points 8 months ago

And with shorting there's no upper limit to what you can lose.

[-] assassin_aragorn@lemmy.world 10 points 8 months ago

To quote XKCD's "Engineer Syllogism":

  1. I am good with numbers and math.

  2. The stock market is mostly numbers and math.

  3. Therefore, I would be -- wait, where did all my money go?

[-] bionicjoey@lemmy.ca 2 points 8 months ago
[-] buddascrayon@lemmy.world 2 points 8 months ago

No shit Sherlock

[-] dantheclamman@lemmy.world 10 points 8 months ago

I think this company is deeply and uniquely incompetent and will never deliver on its objectives.

[-] bradorsomething@ttrpg.network 5 points 8 months ago

It will be about a week until options come out. A put option simulates renting 100 shares of a stock over a time period, and collecting the difference between the strike price you pay for and the lower price if there is one. If the price ends higher, you lose the rent you paid.

[-] ColeSloth@discuss.tchncs.de 4 points 8 months ago

It would be hard to get that many separate entities to all start shorting a stock all at the same time. Especially on a well known entity that may have quite a bit of action.

[-] TropicalDingdong@lemmy.world 1 points 8 months ago

No you should make investment decisioms purely for the fun of it.

Also, WSB has been wanting to short reddit for literally years, so this is barely news.

[-] someacnt_@lemmy.world 1 points 8 months ago

Yeah but I would short just a little, considering it will have hard time going 100x. Tbh 10x would be as difficult, but gotta play safe.

this post was submitted on 24 Feb 2024
1020 points (98.9% liked)

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