So will they have any model to finally monetize their users effectively? And start making money?
Pay to unban user might work.
Reddit Launches Long-Awaited IPO with $748M Target
11–20 of 64 posts
Re: Reddit Launches Long-Awaited IPO with $748M Target
#12Re: Reddit Launches Long-Awaited IPO with $748M Target
#13It's kind of... hilarious that Reddit has managed to wait so long that they've ended up shooting for an IPO just after the company's third largest individual shareholder (Altman) created an existential threat to destroy reddit. A couple of years ago I think you could've made a decent argument for reddit, it's never going to have as good economics as Facebook but there's definitely value and communities there. It's a…
I think what you're pointing out is systematic risk for all social media or companies driven by online advertising. You can think Reddit is a good play relative to those companies. Just buy reddit and short snap for instance
For instance, reddit has these things going for it:
Data - sure bots will influence Reddit but there are still a lot of users today. Sophisticated anti bot technology could help keep that somewhat down. Besides if gen ai becomes so good such that it can generate high signal training data for itself, presumably the bots could benefit Reddit. Sometimes I just want information or discussion, and I don't care if I'm talking to a dog on the other end
Low RPU relative to competitors - the demon is different than Facebook or Instagram but the rev per user is absurdly low and can probably grow somewhat
What twitter pulled off - twitter ditched something like 80% of it's staff and is pushing out product faster than ever. Think about how much it changed in the last two years. Editable comments, subscriptions, revenue sharing, blue checkmark for sale, alternative check marks for govts and org, culling of old accounts, API restrictions, forcing people to put parody in acct, xAI, long form video, prob more things I'm forgetting. If the right person decides to cut out all the bullshit and prioritize things like making the website not a flaming dumpster fire, no reason that couldn't dramatically impact usage
Re: Reddit Launches Long-Awaited IPO with $748M Target
#14Someone should get all of Wallstreetbets to short Reddit to the deepest depths of evaluation :D
Or someone just buy all the stock and just end it, pretty please.
Re: Reddit Launches Long-Awaited IPO with $748M Target
#15Their IPO pricing requires some 20-25x growth. No way.
Re: Reddit Launches Long-Awaited IPO with $748M Target
#16Reddit CEO pay was $190M Company exists simply to extract money for the CEO. You'd have to be insane to buy any shares.
The source for this figure: https://www.sec.gov/Archives/edgar/data/1713445/000162828024...
CEO pay for 2023: 341,346 (cash salary) + 98,332,716 (stock) + 93,776,049 (options) + 792,000 (cash bonus)
It's hard to really value the 190M of stock+options, though it seems like it'll be enought to buy some really nice avocado toast.
Anyway though, shouldn't we be celebrating this? Isn't it the hacker news dream, creating a startup that creates zero real physical products, contributes to climate change, drives youths to addiction and worse, all while becoming filthy rich along the way.
Re: Reddit Launches Long-Awaited IPO with $748M Target
#17Reddit CEO pay was $190M Company exists simply to extract money for the CEO. You'd have to be insane to buy any shares.
The source for this figure: https://www.sec.gov/Archives/edgar/data/1713445/000162828024... CEO pay for 2023: 341,346 (cash salary) + 98,332,716 (stock) + 93,776,049 (options) + 792,000 (cash bonus) It's hard to really value the 190M of stock+options, though it seems like it'll be enought to buy some really nice avocado toast. Anyway though, shouldn't we be celebrating this? Isn't it the hacker news dream, creating a…
yes, we should be celebrating this. also, 1) cash comp was $1m and the $190m equity grant vests over 10 years, 2) see the comment posters username - are we surprised by this take? lol
re (1): https://x.com/eshear/status/1761483016936046596?s=20
Re: Reddit Launches Long-Awaited IPO with $748M Target
#18It's kind of... hilarious that Reddit has managed to wait so long that they've ended up shooting for an IPO just after the company's third largest individual shareholder (Altman) created an existential threat to destroy reddit. A couple of years ago I think you could've made a decent argument for reddit, it's never going to have as good economics as Facebook but there's definitely value and communities there. It's a…
I think what you're pointing out is systematic risk for all social media or companies driven by online advertising. You can think Reddit is a good play relative to those companies. Just buy reddit and short snap for instance For instance, reddit has these things going for it: Data - sure bots will influence Reddit but there are still a lot of users today. Sophisticated anti bot technology could help keep that somewha…
It's uniquely bad for Reddit for a few reasons - more pseudonymous users, less 1:1 direct communication, and far more text based than competitors like Insta.
Twitter is also a good point - Reddit looked a hell of a lot more valuable when it was sitting next to a $44Bn Twitter. Now it's sitting next to a steaming pile of far-right rubble that might not even have equity value.
Re: Reddit Launches Long-Awaited IPO with $748M Target
#19It's kind of... hilarious that Reddit has managed to wait so long that they've ended up shooting for an IPO just after the company's third largest individual shareholder (Altman) created an existential threat to destroy reddit. A couple of years ago I think you could've made a decent argument for reddit, it's never going to have as good economics as Facebook but there's definitely value and communities there. It's a…
How many real users are on HN? It was pretty obvious years ago that some users were AI bots. The bots used fake words and sounded like it was full of academia jargon but the words were not real words.
After AI advances in the past couple years I am almost to the conclusion that I will stop posting. Especially considering the close ties with HN and Altman, I am not here to fine tune someone’s AI.
Re: Reddit Launches Long-Awaited IPO with $748M Target
#20It's kind of... hilarious that Reddit has managed to wait so long that they've ended up shooting for an IPO just after the company's third largest individual shareholder (Altman) created an existential threat to destroy reddit. A couple of years ago I think you could've made a decent argument for reddit, it's never going to have as good economics as Facebook but there's definitely value and communities there. It's a…
I think what you're pointing out is systematic risk for all social media or companies driven by online advertising. You can think Reddit is a good play relative to those companies. Just buy reddit and short snap for instance For instance, reddit has these things going for it: Data - sure bots will influence Reddit but there are still a lot of users today. Sophisticated anti bot technology could help keep that somewha…
>If the right person decides to cut out all the bullshit and prioritize things
How can that be an argument in favor? If the right management team magically came around, you could also buy Boeing based on that hope. But I don't think any sane investor would do that.