Reddit investor Tom Sosnoff says IPO could benefit from being the only ‘pure social media’ stock

[Pelican Press 0]

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investor Tom Sosnoff says IPO could benefit from being the only ‘pure social media’ stock

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may have a lane on Wall Street all to itself when it goes public later this week, according to Tom Sosnoff, CEO at brokerage firm TastyLive. Sosnoff told CNBC’s ” Squawk Box ” on Wednesday that

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will fill a niche in the market for investors who want to bet on the growth of social media. “I think

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’s going to be a really interesting play because it’s going to be, for most investors, the only tradable pure social media app,” Sosnoff said.

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’s IPO is expected to price on Wednesday, with the stock set to trade on Thursday. The company said it expects the stock to be valued at between $31 and $34 per trade, which will result in a capital raise of about $750 million . Investing in social media has changed dramatically over the last decade.

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is now a private company owned by Elon Musk.

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changed its name to Meta Platforms and has been spending billions of dollars to diversify away from social media. Snap pitches itself as a camera technology company instead of a social media firm. And the emergent TikTok is owned by the private ******** entertainment conglomerate ByteDance.

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being a pure play social media stock could have a downside too, as the company has never turned a profit. Sosnoff said he believes the company will become more disciplined and focus on profits once its is public. “I think it’s because they’ve never really had to. I know that sounds kind of crazy, but one of the nice things about

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going public is that it’s going to force them to learn to be profitable. And remember, that’s happened to a lot of companies,” Sosnoff said. Sosnoff is already an investor in

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. He told CNBC that he bought equity in the company through a private ***** last year at a $5 billion valuation. Because he is a pre-existing shareholder, he is subject to lockup ******* after the company goes public, Sosnoff said. Outside of the institutional investors are large funds that typically participate in IPOs,

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has also opened the process to some of its users. That group is not subject to a lock-up *******, which

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warned could increase the volatility of the stock.

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Social media,Investment strategy,Markets,Meta Platforms Inc,Snap Inc,regwall-pro,business news
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#investor #Tom #Sosnoff #IPO #benefit #pure #social #media #stock

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