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.
  • jubilationtcornpone@sh.itjust.worksEnglish
    362·
    10 months ago

    $5 Billion for a chronically unprofitable, niche social media platform in an already crowded field. Yeah, Ok. You’d get a better return on your investment if you just burned the money for heat.

      • jubilationtcornpone@sh.itjust.worksEnglish
        2·
        10 months ago

        Reddit is niche when it comes to social media. It caters to a particular group of people and has its own style of both content and engagement, just like Facebook or Tiktok have their own styles. I would argue reddit is, in some ways, more like an old school forum with a fresh coat of paint. It requires more effort from the user to engage with than some other social media platforms. The content can be a lot “heavier” and it’s not centered around people and/or personalities. To be clear thats something I liked about Reddit but I don’t think it really resonates as much with the average user.

        Site visits are just one metric and, while it’s an interesting metric, it doesn’t say much without a lot more context. OK, so a lot of people end up visiting Reddit. Why? Is it intentional? Is it because every third Google result is a reddit post? If so, is it driving further engagement? If not, then that benchmark is worth little. If it is driving further engagement, then something else is wrong.

        • OfficerBribe@lemm.ee
          1·
          10 months ago

          Is reddit really considered social media now? I always have described it as the biggest forum and site aggregator on internet.

          I know at some point avatars and some crypto? BS came, but that did not change site fundamentals, reddit to me still feels like the same site I joined 10 years ago especially because I used same reddit client for majority of those 10 years. Only reason why I abandoned it is the closure of free API. That and the fact I dislike management, but if 3rd party clients would not have been nuked like that, I would have probably stayed.

          Now I am using same client I used for reddit - Sync, so from UI perspective nothing has changed.