“Our company doesn’t make money, it also is projected to not be able to continue to make money. We’ve attempted multiple ways of monetizing the userbase, all of which has not recouped costs. We value ourselves at 6.4 billion dollars.”
lol, she said.
lmao.
That means that over and above whatever debts they have, they think the market values the data their users have given them is worth that much. That said, if Google is only paying then $60M/year for access to that data, they are going to need a lot of customers like that to reach $6.4B valuation.
It’s also only valuable if people keep contributing to it. It’s highly likely the majority of current existing reddit data has been largely incorporated into many LLMs prior to the API access limiting. Google paying them 60 million dollars is a hilarious pittance to keep training their LLMs, given how much money AI services will likely generate off of the training data.
I don’t actively use reddit anymore, but when I need an answer to something that isn’t programming-related, it’s usually the top source on any given web search. That kind of content is basically the only stuff I would give a shit about. I can’t imagine how much absolute garbage you have to sift through on the platform to get reliable training data. Maybe the ratio is terrible and that’s why Google paid so little.
values the data their users have given them
… and will give them
How quick after IPO do they ban porn and how quick after that does the site fail?
They know it will be big backlash so they got to wait till the move is profitable. Knowing these morons though, they will do it as soon as business times brings it up.
And so enshrined is that final nail in the enshitiffication coffin that was Reddit. I give it 3mo before Spez leaves Reddit to focus on [whatever].
Happy cake day!
F-k I’m old…
Happy cake day!!! Thank you so much for everything you do for Beehaw. 💛
(It’s already…? Oh, it is in that timezone 😇)
users could become unruly if Reddit stock falls below the IPO price.
Lmao, dude doesn’t know redditors at all, do they?
Actually part of their IPO paperwork lists WSB as a potential positive benefit to the stock, in terms of having a clear userbase that will theoretically help sustain the value through shenanigans. That, to me, however, sounds like a securities violation waiting to happen.
I don’t check reddit anymore. Does WSB actually consider this stock to be, uh, actually valuable? Every corner of the internet I’ve seen discuss this topic have all noted how worthless they think the shares are going to be. My money is on them shorting it.
Username checks out…
WallStreetBets diamond hands to the end! 💎👐…💥
Lmao, I was thinking more about how fractious reddit is even without provocation, but you’re right, too!
Oh man are reddit users in for it when they have to answer to the market and public shareholders. Who really will just be a bunch of evil boomers holding institutional blocks.
I mean, this will probably kill the platform long term. Not the stock its self, but what’s going to happen when they need to start answering to an outside pool of share holders.
The website became popular because of its user curation and moderation. That meant it was showing people what they wanted to see and allowed them to self select into communities that facilitated that.
They’ll be forced to bring in smooth brained business types that will focus on putting ads and “native content” in people’s faces as much as possible. At the same time cracking down on “not advertiser friendly” content and mod teams that don’t play ball.
All of this has kind of happened already to some extent, but it’ll get a lot worse when shareholders demand they bring in consultants or new leadership who think they know better than the team that’s been struggling with this for over a decade. Even if the average user won’t understand what is wrong, they’ll spend less time there as it starts to fail to show them what they want. But hey, the share holders might make their money back before the platform dies.
I am not a broker and this is not advice. But I think this is a fantastic short opportunity.
Reddit is just like our all ex.
