Reddit will learn how to monetize their customers and surprise people, says tastylive’s Tom Sosnoff

all right Reddit set to price after the Bell today and joining us with a look at what investors can expect is Tom snoff he is founder and CEO of tasty live um Tom you're an investor in Reddit when did you buy into this a last summer and that was when the valuation was for10 billion for Reddit at that round no I did it um on a private offering I guess insiders were selling and it was on a $5 billion valuation okay so what do you think um about the IPO the day the day it's pricing tonight it's goi

ng to price after the Bell tomorrow we'll see the first trade where where are you think about all of this um I I actually I I obviously I like it because I think it's gonna you know trade a little higher than than that level I think it'll probably be in the you know six and a half to 7 and a half billion dollar range so I think that's good I I think reddit's going to be a really interesting play because it's going to be the only kind of tradable for most investors the only tradable pure like soc

ial media app so I I kind of like it from that you know in that regard there was a story on Reuters yesterday that was suggesting that this was oversubscribed but we've heard from other sources maybe to to brush that off oversubscribed I think they said by four to five times um what do you think the the level of interest is um you know we don't do IPOs we're a brokerage firm but we don't participate in IPOs it's just not our business but from what I've heard it it's a little bit tough to get the

stock I mean I know that they offered the stock to um you know to people that have been to their moderators and to the people that have been you know um kind of working with Reddit uh I think that's really good that people have skin in the game I heard it's a pretty tough stock to get on the IPO but I haven't tried myself so I don't know the other issue though is that those redditors um anyone who gets that stock is not facing a lockup so you could see all of those people who are getting a litt

le bit of payback for the volunte work that they've been doing for the site for a long time who then decide to go ahead and drop it uh pretty quickly does that concern you I mean doesn't concern me because I think that generally you know if you've been if you've kind of been on Reddit and you've been a partic and you've been participating from kind you know last 10 or 15 years or last two years whatever it is you're probably just going to be naturally a contrarian a little bit bearish but I thin

k that eventually the marketplace will win you over so I I think that's a um I think might be a nice payday but I don't think it'll have any effect long term on them meaning that you plan to be a long-term shareholder you're not going to sell your stock in the next few months well I I can't anybody that participated in previous rounds you're locked up yeah we're locked up for at least six months I believe but I don't know the at least six months Tom Reddit has been such a fan favorite a place th

at people love to go and has such huge loyalty from the people who are users but at the same time the company's never been able to make money what why do you think that is well I think it's because they never really had to I know that sounds kind of crazy but one of the nice things about Reddit going public is it's going to force them to be to learn to be profitable and and remember that's happened to a lot of companies when you're when you're a private company it's easy to raise Capital you hav

e a little bit less incentive to learn how to make money and learn how to be profitable once you go public you don't have any there there's no there's no Escape there's no other path you can take so I think Reddit um I think it's very natural and Reddit will learn how to monetize their customer base is huge and their participation level is really steady I think they will learn how to monetize their customers and they probably will surprise people just this week we heard this claim from Nokia abo

ut patent infringement um have you been able to dig into that or get any details on it not dig into it at all but I read about it just like you and everybody else I kind of feel like it's a it's kind of a um a PR play kind of a cheap shot by Nokia because they figured they'll get some you know they'll get some press on it so I don't read anything into it I kind of think it's it's you know it it's it's it's almost like every time a company files for an IPO somebody files a lawsuit because they th

ink it's an easy settlement I kind of think it's the same thing for Nokia I don't I don't I don't give that any any leverage whatsoever