Technology
This is the official technology community of Lemmy.ml for all news related to creation and use of technology, and to facilitate civil, meaningful discussion around it.
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Rules:
1: All Lemmy rules apply
2: Do not post low effort posts
3: NEVER post naziped*gore stuff
4: Always post article URLs or their archived version URLs as sources, NOT screenshots. Help the blind users.
5: personal rants of Big Tech CEOs like Elon Musk are unwelcome (does not include posts about their companies affecting wide range of people)
6: no advertisement posts unless verified as legitimate and non-exploitative/non-consumerist
7: crypto related posts, unless essential, are disallowed
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The markets are insane. There is no way Reddit is worth 5 billion.
watch the reddit ipo be a catalyst for a stock market crash.
To me it’s a sign of how out of whack the stock market is right now. Lemmy created the Reddit experience at a fraction of the cost. Yet Reddit spends millions a year doing it.
The difficult thing is gaining users, not writing the code.
Considering a large majority are bots, I don't think that is their issue. Until their numbers are public, we won't be able to see the acquisition cost.
I don't think the number of bots matters much, there are much more real people on Twitter than on Mastodon. It's not an issue for Twitter because they already are the platform where everyone else is. I'm optimistic about Mastodon, it already has the better UX and the better business model and I think it will slowly attract more users over time and eventually reach the relevance that Twitter had at its peak.
and twitter wasn't worth 44 billion dollars. They also were not profitable.
Reddit is not worth 5 billion dollars. A few years ago they claimed 10 billion.
People need to stop assigning such high valuations as this is what creates billionaires when the value isn't there.
It's hard to tell how much a platform is worth, arguably the value of Twitter was 44B, since someone was willing to pay that.
The good news is, if you're really certain that Reddit is overvalued, you'll soon be able to short it and get rich if you end up being right!
I don’t short stocks. I invest in companies I believe in and that provide value. That’s why I won’t invest in Reddit. I don’t believe in the company or the people running it. I have a few odd ball stocks like Google that I don’t believe in but overall they treat their employees well and they have a plan for success. I’m a big fan of their 5% policy. I just overall don’t like their model.
I think it's reasonable to not short stocks. I just find it a bit weird to see people confidently proclaim that a company is overvalued, but than not shorting the stock, which would be the rational thing to do.
It’s gambling and not investing. If I thought it was valued properly, I’d invest in the company. I don’t as such I won’t invest in the company.
I don’t gamble with my money. I invest in companies long term
Imagine reddit causing The Great Depression 2.
"They really spezzed up the economy."
How much was WeWork valued at without turning a profit?
Some huge validation. It’s not profitability. It’s does it make sense. Many companies forgo profit for growth. That’s common. Wework never made sense at its valuation to me.
Same with Resdit. What is reddits path to profitability ? What value does it create? With their admins and mods being dipshits. It’s a liability to a company and not an asset. I would never buy from a company advertising on Reddit.
It's not that much for a tech company with such a big user base
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