“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.
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 😇)
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.
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 am not a broker and this is not advice. But I think this is a fantastic short opportunity.
Who’s shorting RDDT?
SHORTIT
Just waiting for it to crash and burn in a year
So that’s how much they value their current and future data gathering operations to be. Because we know it isn’t going to turn a profit, ever.
what on reddit is worth $6 billion dollars?
Users
NFTs, crypto…
Oh wait, they axed the main vector to make those valuable (third party apps), didn’t build a real market for any of it, then rugpulled everyone. Guess it’s just the Google results now… for comments that people forgot to blank.
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