Reddit Inc. is weighing feedback from early meetings with potential investors in its initial public offering that it should consider a valuation of at least $5 billion, according to people familiar with the matter, even as it is estimated below that figure in the volatile market for shares of private companies.
It has no profit, no path to profit and most the users are bots. If advertisers paid attention, they’d realize it’s with next to nothing
Musk bought Twitter for $40B, and the same is true there.
I agree. If anything twitter shows how overvalued Reddit is. Twitter has produced a profit at some point. Reddit has not. Another difference is Elon wanted to own twitter for God knows what reason and got other to buy into it.
As an investor I would have skipped on both buyouts.
Same here. I’m just pointing out that $5B is not unreasonable given other acquisitions in the field. Reddit has a lot of users, a lot of useful data, and relatively low hosting costs (mostly text, very little video or images).
Now the data angle I do get. I’m not sure how useful it is but it does seem to be used by some AI companies.
Lots of users doesn’t necessarily translate to profit. Often it just means more overhead.
That’s where Reddit has failed to make it profitable. In the 80’s we use to have bbs systems. They were hobbies. That is what Reddit reminds me of but with dipshits running it.