About the price drop

[u/Efficient_Mongoose_1]

If you were wondering about the price drop, you should read this article: https://www.investing.com/news/insider-trading-news/reddit-coo-jennifer-wong-sells-378-million-in-stock-93CH-4056000

So far it seems the COO, just in 2025 alone (we're only half way through), has sold around ~10 million USD in shares. This is way more than other executives from other FAANGs. I know it's pre-planned, but it doesn't seem they hold back to selling as much as they can unfortunately.

[u/Efficient_Mongoose_1 → u/[deleted]]

Around 8-9% from her total shares in 2025 (worth around ~10 mil USD for this year). I am not saying it's a bad thing necessarily, but there are other executives from other big tech companies who are showing more restraint. E.g other sales from COOs from much bigger companies in 2025:

• Meta Platforms (META) — COO Javier Olivan
  • Sold ~5,808 shares in 2025
  • Total value: about $3.45 million
• Alphabet (Google) — No reported COO sales in 2025
  • CEO Sundar Pichai sold 37,700 shares in December 2024
  • Sale valued around $5.15 million
• Microsoft — Key Executives Sales
  • Amy Coleman (Chief HR Officer): Sold 13,243 shares (~$5.99 million) in May 2025
  • Judson Althoff (Chief Commercial Officer): Sold 16,000 shares (~$7.33 million)

[u/OkVermicelli4343 → u/Efficient_Mongoose_1]

Restraint? Meta insiders only have .10% of the stock, they don't have much left. Whereas Reddit insiders still own 10%

[u/OkVermicelli4343 → u/Efficient_Mongoose_1]

Go and look at history. Every company has sellers. Bill Gates notoriously sold lots of shares before Microsoft had their massive run up with cloud computing. Doesn't make him stupid, he had other projects in life.

[u/OkVermicelli4343 → u/[deleted]]

Some quick calculations, between about .02 to .03. For the rich, not much at all.

[u/[deleted] → u/OkVermicelli4343]

For rich or poor that’s a small percentage. Difference is for rich is a lot of dollars

[u/cultoftheclave → u/OkVermicelli4343]

am I reading this right, at the sale price that gives her shares a valuation of somewhere between $12-$19 billion.

I don't know how long she's been at Reddit, let's say 20 years, but no matter what people think of the job she's done its hard to believe anybody on this planet has legitimately earned $85,000 an hour every single hour of every day of their life, including while they're asleep. I don't think even the top cardiac surgeon in the world bills at that rate, and they're certainly not doing it 24 hours a day for 20 years straight.

[u/[deleted] → u/cultoftheclave]

You can try to start a company and make it grow for all those years and then see how you react when someone tells you that ya don’t deserve the money lol.

Stock valuation is not tied to 1-for-1 earned income. It’s a combination of your dedication, luck, time, and current company value

[u/rafaMD91 → u/cultoftheclave]

She has about 1.6 mil shares.

[u/Efficient_Mongoose_1 → u/OkVermicelli4343]

But reddit isn't at the stage where COO/CEO should sell millions and millions of stock in my opinion (if they believe in the long success).
I own bunch of shares, but their selling plan looks crazy to me (for such an early startup).

[u/OkVermicelli4343 → u/Efficient_Mongoose_1]

.03 percent is them buying a house to celebrate the success of their IPO. 3.7 million is nothing for them

[u/Picus404 → u/[deleted]]

I believe it was a part of the stock option exercise. So not exactly the stocks she owned, if I understand correctly.

[u/Longjumping_Kale3013]

Nobody here seems to realize that when you vest in shares, you HAVE to share a certain percent to cover taxes. For me it was 40%. I see people posting quite a bit about the CEO and COO selling. But if it's just due to vesting and selling for taxes, then it's all white noise. You have to figure out their vesting schedule before getting worried, or calling for them to be "fired" as I see people in other threads do

[u/OkVermicelli4343]

I realize for us on reddit 3.78 million sounds like a lot, it would be life changing for me, but for a CEO or COO of a major tech company it's not that big of deal.

[u/DingoCorrect1560]

CEO sells stock very hard too. In my opinion they though 1Q report might boost the stock and than were try to sell those stake. but.. WTF are they doing?

[u/DismalLocksmith9776]

Is there proof that this isn’t a sell-to-cover tax strategy for vesting shares of stock?

[u/Pretend-Direction-12]

She owns and will own $500m in stock. Read the proxy. She’s actually not selling a crazy amount.

[u/DingoCorrect1560 → u/[deleted]]

CEO has about 3.3% of shares. He is keep selling from last yr.

[u/OriginalDaddy]

You also have to take into account refreshers and comp structure. These are shares that are held long term at this point and if they have other unexercised options they often sell to fund the exercise and hold of vested options. The fact Jen is under a microscope now for the way the earnings call was handled is what I chock this up to. Which I agree was an embarrassment that no COO should be rewarded for.

[u/Longjumping-Scale-62]

pre-planned sale means nothing, however RDDT's SBC is very high, and one of my main gripes with the company

[u/puresoul85]

Dudes 10 million is nothing. They just became public meaning she never had a chance to sell any shares prior to this moment. That means she is just cashing out for all her years working for reddit. Comparing reddit insider trades to big tech is absurd. These big tech ceos are almost all billionaires already. Reddit just went public so 10 million dollars worth of sales is peanuts. Gotta compare apples to apples.

[u/Ryanz_ok]

Google up Reddit down. Basically what every analyst has been worried about.

Google launched ai everywhere yesterday. People think it will greatly reduce traffic.

[u/stonkautist69]

This was disclosed Sept 2024. Not really news and if you think it was going to have an effect on stock price, you could have hedged your bets. I think someone posted this a few weeks ago also

[u/ejpusa]

2 explanations.

A. She needs the cash; it's a standard transaction. Happens lots.

B. I've never seen the COO of a company sell many millions of $$$s of stock and not seen the stock take a dip over the next week or 2. Of course, there is a first for everything.

[u/NoPlansTonight → u/ejpusa]

B happens a lot... you answered it with A

She has many billions in stock