On Monday, bitcoin spiked by more than 5% to breach $66,000 for the first time in nearly three years. Ether, solana, dogecoin, and other tokens are also staging rallies. In February, the value of the cryptocurrency market returned to $2 trillion for the first time since April 2022.
They’re particularly big fans of electric-vehicle stocks; Tesla enjoys unique enthusiasm on the forum. Like Bitcoin, Tesla, and the SPAC IPO, the Reddit forum r/wallstreetbets grew exponentially in 2020. In the first weeks of 2021, it https://www.forex-world.net/ discovered just how strong it’s become. Standard Chartered has predicted that ETF inflows could help push bitcoin’s price to $200,000. Fundstrat’s Tom Lee holds an even more bullish prediction, saying the crypto could reach $500,000.
WallStreetBets, “r/wallstreetbets,” a forum or “subreddit” on the popular website Reddit, is a social platform and discussion group that chats about speculative investing. The group, born in January 2012, communicates using lots of memes, videos, inside jokes and terminology. Its wide membership of 900,000 flaunts a very specific (sometimes profanity-laced) culture and uses terms like “degenerate” to refer to its members. During the GameStop-trade saga, several Wall Street Bets posts with tens of thousands of upvotes have graced the pseudo-hall-of-fame page.
Their overwhelming bullishness has fueled billions of dollars in losses for short-sellers. One bear has even stopped commenting on GameStop stock, citing harassment from some members. The subreddit r/wallstreetbets, where amateur investors convene to share investing ideas and thoughts, has now grown into a community of nearly 3 million. Coupled with the rise in popularity of trading apps such as Robin Hood, these so-called retail investors, who are doing it solo without the help of hedge funds or money managers, have shown immense, unprecedented power over financial markets.
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Reddit has more than 100,000 communities, 73 million average daily active uniques, or DAUq, and 267 million average weekly active uniques, according to the filing. As of the fourth quarter of 2023, Reddit’s U.S. average revenue per user, or ARPU, was $5.51, down from $5.92 from the previous year. The company’s global ARPU was $3.42, which was a 2% year-over-year decline from $3.49.
If you are harassing someone, you will be permanently and immediately banned and reported to Reddit admins. Reddit has raised about $1.3 billion in funding and has a post valuation of $10 billion, according to deal-tracking service PitchBook. Reddit spun out of Conde Nast’s parent company, Advance Magazine Publishers, in 2011. For example, Google on Thursday announced an expanded partnership with Reddit that will give the search giant access to the company’s data to, among other uses, train its AI models. Reddit said that by 2027 it estimates the “total addressable market globally from advertising, excluding China and Russia, to be $1.4 trillion.” Reddit said the current addressable advertising market is $1.0 trillion, sans China and Russia.
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“For example, although we saw increased growth in our user base during the COVID-19 pandemic, we experienced lower levels of DAUq growth and declining DAUq as the effects of the COVID-19 pandemic subsided,” the filing said. Reddit appears to be investigating a business strategy akin to that of Roblox, which derives the bulk of its revenue https://www.investorynews.com/ from digital sales on its social gaming platform, and online retailer eBay. The company wants to introduce more features to create a user economy that could include games, according to the filing. Reddit said there are currently informal exchanges of physical and digital goods and services that may create another line of revenue.
- In 2021 Reddit raised funds valuing it at $10 billion, and Bloomberg News reported the following year that the company could potentially have been valued as much as $15 billion in an IPO.
- “Even though Fed rate-cut expectations have been pushed back, the threat of rate hikes is off the table for now,” Blue Chip Daily’s chief technical strategist, Larry Tentarelli, told Business Insider, adding, “So bitcoin has been rallying.”
- “It’s absolutely part of what is contributing to this gain stock event.”
- On Monday, bitcoin spiked by more than 5% to breach $66,000 for the first time in nearly three years.
Countless users unfamiliar with Wall Street Bets have been exposed to its exuberance and high-risk, high-reward behavior, often through posts showing off multimillion-dollar gains on GameStop shares. Its market debut, expected in March, will be the first major tech initial public offering of the year. It’s the first social media IPO since Pinterest went public in 2019. The social media company plans to target a price range of $31 to $34 per share in the first-time share sale, the people said, asking not to be identified because the information is private. Almost any post related to the stock market and investments is welcome, including pre IPO news, futures & forex related to stocks, and geopolitical or corporate events indicating risks; outside this is offtopic and can be removed.
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Ninety-four percent of those inflows moved into bitcoin products. Trading volumes in the investment products hit a record of more than $30 billion in the same stretch. Tentarelli and other market pros have pointed to the emergence of bitcoin ETFs as a “tremendous” driver of crypto demand, as the products allow more investors to gain exposure without buying tokens outright.
At the time, Reddit said the pricing change was necessary because many big tech companies were using data to train large language models. Reddit said it had $804 million in annual sales for 2023, up 20% from the $666.7 million it brought in the previous year, according to the filing. https://www.dowjonesanalysis.com/ The social networking company’s core business is reliant on online advertising sales stemming from its website and mobile app. Take a look at Benzinga’s top choices for best online brokers, create an account and get started trading the stocks due to the subreddit trend.
Simply put, the subreddit amplified a trade, stoked a fear of missing out that pulled in new investors, and reveled in Wall Street’s surprise. Halving happens once about every four years, with occurrences in 2020, 2016, and 2012. In the 12 months after the previous three halvings, bitcoin climbed by 8,069%, 284%, and 559%.
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In 2021 Reddit raised funds valuing it at $10 billion, and Bloomberg News reported the following year that the company could potentially have been valued as much as $15 billion in an IPO. Some details including the price range and valuation were reported earlier by The Wall Street Journal. Bublick noted that Robin Hood gets rid of the traditional barriers to entry for people wanting to dabble in the stock market, saying it is “available, basically, to everyone with a smartphone.”
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Yet both generate trade ideas that proliferate across market participants. And Wall Street Bets’ ability to turn free, user-produced research into hugely viral media has seemingly been underestimated. Yet previous Reddit-fueled rallies typically lasted a matter of days before profit-taking pulled prices back to earth. The subreddit’s obsession with GameStop shows no signs of abating.
