Discord, Reddit, IPO, economic reality
So Discord and Reddit are going to do their IPO soon. It’s plainly obvious by now that both of their recent moves are an attempt to artificially gain value before an IPO drops. The real problem for both these companies is that the economic situation right now is probably the worst time to do an IPO. High interest rates means that borrowing is expensive, and a general economic malaise means that investors are not going to be patient like in the days of yore.OTOH though, if they were to delay their IPO they would face the wrath and ire of investors already in on the ground floor. They’re probably not gonna pull their money (not that they can), but it’s plain that a company would not go public unless there’s a significant push to do so either by the administration and/or present investors. An IPO makes the administrators rich on day one, and it makes the present investors feel like they’re gonna earn a return.
My prediction is that for both companies, the IPO will cause a spike in their prices due to the novelty effect, and then a fair slump as the economic reality kicks in. No matter if I’m wrong or right here, both corporations will continue their present shit path — either to justify a high pricing, or to either pump up a low price.
Put simply, we are only at the beginning of the storm.
