The fact that this is so transparent might bite them in the ass because it demonstrates that they are aware that they might not be in a great place if they need to take actions to “prove” everything is still ok. I agree with those saying that this showing everything is fine is more likely to be misleading, and misleading investors is a great way to get sued.
I am biased here, but to me this appears to be transparently misleading and if Reddit’s price tanks after the IPO, these actions will be examined closely during a class action suit that will get access to internal communications.
They can show high engagement, but if that engagement isn’t linked to profit or revenue, then calling it a good reason to buy shares is misleading. They need experts in investor relations and laws to help them navigate this minefield and I suspect that in the end, there will be a big disclaimer on all of the current activity.
Or if they are smart, this current activity isn’t for advertisers and investors but for users, to say “see, we’re still here and fun, so keep coming!”.
The fact that this is so transparent might bite them in the ass because it demonstrates that they are aware that they might not be in a great place if they need to take actions to “prove” everything is still ok. I agree with those saying that this showing everything is fine is more likely to be misleading, and misleading investors is a great way to get sued.
I am biased here, but to me this appears to be transparently misleading and if Reddit’s price tanks after the IPO, these actions will be examined closely during a class action suit that will get access to internal communications.
They can show high engagement, but if that engagement isn’t linked to profit or revenue, then calling it a good reason to buy shares is misleading. They need experts in investor relations and laws to help them navigate this minefield and I suspect that in the end, there will be a big disclaimer on all of the current activity.
Or if they are smart, this current activity isn’t for advertisers and investors but for users, to say “see, we’re still here and fun, so keep coming!”.