Logos of Reddit are displayed, at the New York Stock Exchange in New York City, U.S., March 21, 2024. REUTERS/Brendan McDermidAs Reddit's stock market value soared to almost $9 billion in its Wall Street debut on Thursday, commenters on the social media website's largest stock trading forums voiced skepticism about the outlook for the money-losing company's shares.
Buying put options give traders the right to sell a stock at a fixed price, making money if the stock's market price falls.Its stellar debut - in the works for over two years - is the latest sign of improvement in investors' appetite for IPOs after rising interest rates in 2022 turned investors risk averse.
But recent Reddit comment threads about the IPO have focused heavily on the site's lack of profitability since its launch in 2005. Investors hoping to bet against Reddit's stock will get a chance early next week. Nasdaq plans to list options on Reddit starting Monday. Other options exchanges are likely to list contracts on Reddit at the same time or soon thereafter.