Fidelity estimates Reddit’s holdings are at $15.4 million, which is down over 7% from the fund’s estimates of $16.6 million from this past April.
The reality is that unless you have immense, immense scale (i.e., Facebook, Instagram, YouTube, LinkedIn), making money off social media is impossible. Twitter barely made any money before Elon Musk took it over, and it’s making less now.
Reddit is pseudo-anonymous too and is harder to monetize, because high ad rates come from being able to identify your users.
Where do you get the idea reddit is not as big as Instagram? It has just as much traffic as wikipedia and Amazon in the U.S.
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This explains the spez iron boot. The business is in a lot of trouble and he’s concerned about his job and the jobs of everyone around him. Ironically, the iron boot is making the whole situation worse. Because spez isn’t very good at strategy. Often, bankers are appeased when a business takes bold decisions to cut things. But in this case, it has only revealed what a fragile business Reddit has, from a Wall Street perspective, anyway. Associating himself with Elon Musk is absolutely suicide after that fool got taken for billions in the Twitter sale and has only damaged it further since then. But like I said, not very strategic there Mr spez…
I’m sorry for people losing money because they believed Spaz’s “This will blow over.” Not sorry to see Reddit tanking.
The only people losing money here are corporate private investors. I hope they lose every fucking cent.
I couldn’t care less about corporate investors. They deserve what they’re getting. But far too many ordinary people have been forced to put their retirement funds in the stock market (via 401(k) accounts instead of retirement plans), and I hope they’re safe.
Reddit hasn’t had their IPO yet. The only way that regular people are invested in it are by being invested in equity firms that own part of Reddit today. As best I can tell, the only one such company that (a) is invested in reddit, and (b) is public is Tencent.
So, for now, people are safe. It’s investment managers at private businesses that might get in trouble.
I don’t know, if you believe someone who thinks Elon Musk did a great job with Twitter maybe you deserve to lose money
Fascinating. Should this be legit, this is solid proof for the protest having a tangible financial impact, right?
Impact is already more than evident through search results. Google has had to tweak their search functions because of this and Microsoft pulled out from Minecraft subreddit, and both made sure to announce to the world that it’s because of spez and the protest.
Nah. Doesn’t even account for the protest.
FTA:
this most recent valuation only accounts for the worth of the company’s holdings up to May 31.
They are PROPER fucked for Q3.
I think they are going to run out of funding by the end of the year (or sooner) with mass layoffs of their currently overinflated staff.
I would agree. injects the poison more deeply than it would have otherwise gone.
doing something > just complaining
Nope, this is only though May 31st, per the article.
Reddit was already bleeding value and Spez went on a panicked power trip. The true Musk way.
The IT tech industry isn’t doing great currently. Everything was fine as long as there were a practically infinite amount of money going around, but lately investors have been increasingly demanding signs of profitability over “limitless” expansion and growth.
That’s why a lot of companies have been doing these seemingly drastic changes lately. It may absolutely result in long term damages, but that is not their main concern at the moment. In some cases this is also somewhat a moment for these companies to show their cards and prove that they actually deserve the evaluation that they been given. I suspect that there will be quite a lot of agitated people in the coming months and years.
Remember that there is a general decline in tech stocks at the moment. A few names are being elevated by the AI boom, but for the most part the party has been over for quite a while now. If you keep an eye open, you’ll see stories about a number of different tech stocks declining.
Every time I see such a story, I tend to reply with “why would Elon Musk do this?” Since people acted like Twitter was a unique case being caused exclusively by his leadership, but we’ve seen massive declines in many companies including Meta and Netflix.
True but most tech companies have been making their services worse and driving away customers
For those who didn’t read the article, important note.
The valuation decrease was as of May 31.
It wasn’t even after the Reddit apocalypse! What is going to happen next?
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I think that’s a fair take that’s likely to happen. It really depends now on what Reddit does to try to normalize things or blow things up more. I think if they try to just rebuild relationships with their new group of users, they may survive.
But they also seem equally as likely to find a new way to screw themselves over…
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They still haven’t replaced >90% of the moderators… it will take months, probably longer to feel the full effects. People will test it, and will get creative. There is a decent chance if they aren’t actively working on a sophisticated plan for thay, the website turns into an alt-right cess pool with CP that slips through the cracks.
I anxiously await the day where a news headline mentions Reddit’s IPO be postponed, delayed, or canceled due to a loss of investor confidence.
Do puts count as an investment? I’d be confident in some reddit puts.
I hope they go public, their decline is my next get rich quick scheme.Edit: theyre to their lol
I don’t, I want them to do it and then crash and burn
I was an early adopter of Reddit 16 years ago. I now want the fucker to be a penny stock within a week.
I remember reading that reddit went on a hiring spree and they like multiplied their workforce during the pandemic. I heard some speculation that this API change was about that, because they now have to make ends meet somehow or at least convince the investors that they are doing something. They invested and expected further growth and the pandemic tech boom didn’t last forever. One miscalculation leads to another.
Now that’s poggers
That’s RIPBOZO
TechCrunch notes that the majority of Reddit’s turmoil in holdings occurred last year and this most recent valuation only accounts for the worth of the company’s holdings up to May 31.
That’s before the protest was even started, I would like to know how the value is after (that is now).
Would be interesting to see if the usage has dropped now that all the third party apps are going offline. Apollo and Rif had millions of users didn’t it?
and once again, not a single word about the rise of alternatives that will likely hurt reddit much more deeply longer term than the initial, but vitally important, protest.
at this point, not including analysis of the alternatives in any reddit reporting is journalistic malfeasance (or intentional, malicious debate scoping). smh.
Because that would be speculation, rather than reporting what had already happened.
Hell, the fidelity valuation drop isn’t even due to the protests - as that is backdated to May 31st - I would suspect only further drops when they include June.
well, thats just not a satisfying answer, now is it?!
but seriously, isnt the existence of a viable alternative, in which a non-trivial number of users have expressed serious interest, a news worthy statement of fact? no forward looking statements required.
agreed that the June inclusive update will be really interesting.
LOL eat shit reddit.
I hope spez ends up working at a Dennys drive in, in three years time
Oh no! Anyway…
Oh no! Anyway…
