$5B is definitely a lot more realistic than the $15B valuation they were targeting in 2022, but IMO Reddit is still not a sustainable business as it stands today. So many investors have had their money tied up for over a decade will little to no growth and are going to be scrambling for an exit on IPO day. Revenues are barely growing, losses are increasing. I don't see a rosy future for this stock.
Unlikely sustainable without innovations. A payday for stakeholders and then popular-brand bagholders magnet, possibly a buy-rumor-sell-before-quarterly-report playtoy. I wouldn't expect UX increase and the question is how long the enshittification-revenue balance will be kept steady.
It’s run incompetently just at the moment. You have a golden opportunity right now with the enshittification problem. How many people put Reddit after the KW in search? If it’s opened up maybe it’ll get better management.
The only thing that really has value at Reddit right now seems to be their giant archive of user generated posts. It is certainly going to be interesting come IPO day.
Valuation of $5 billion would buy P/S 6.3 with negative P/E for 18 year old non-innovating company that is already in the second phase of enshittification.
paxys|2 years ago
voytec|2 years ago
ametrau|2 years ago
jallasprit|2 years ago
rchaud|2 years ago
Reddit is 90% noise, a lot of the content is going to be "meme reply" type comments, to topics posted by karma bots.
ChrisArchitect|2 years ago
More discussion on the official S1: https://news.ycombinator.com/item?id=39472782
tcmb|2 years ago
nabla9|2 years ago
shitlord|2 years ago
Edit: cfo -> coo
Havoc|2 years ago
And by pull it off I mean original investors get out and someone else is left holding bag
brodouevencode|2 years ago
kromem|2 years ago
It could have been extremely valuable, but at this point management has been clearly outed as having no idea what they are doing.