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Reddit cites r/WallStreetBets as a risk factor in its IPO filing
(techcrunch.com)
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this post was submitted on 24 Feb 2024
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It's only not profitable because the CEO and CFO are taking such massive salaries, $193M and $93M, respectively.
They took $286M and the company lost $90M. They could take $90M less - still taking almost $200M - and Reddit would be profitable. That alone should tell investors that this is a bad investment.
That's not exactly correct. The CEO & CFO are paid a salary way less, like I think around the $300k range. The $285M is in stock options, which only has a value based on the price of the stock. They could hand them back to the company but they would be of no value to the company until the IPO.
Plus $800k in performance based bonuses.
Right, but that's nowhere near the money to be able to make the company break even.