$5B is definitely a lot more realistic than the $15B valuation they were targeting in 2022, but IMO Reddit is still not a sustainable business as it stands today. So many investors have had their money tied up for over a decade will little to no growth and are going to be scrambling for an exit on IPO day. Revenues are barely growing, losses are increasing. I don't see a rosy future for this stock.
Unlikely sustainable without innovations. A payday for stakeholders and then popular-brand bagholders magnet, possibly a buy-rumor-sell-before-quarterly-report playtoy. I wouldn't expect UX increase and the question is how long the enshittification-revenue balance will be kept steady.
It’s run incompetently just at the moment. You have a golden opportunity right now with the enshittification problem. How many people put Reddit after the KW in search? If it’s opened up maybe it’ll get better management.
The only thing that really has value at Reddit right now seems to be their giant archive of user generated posts. It is certainly going to be interesting come IPO day.
Valuation of $5 billion would buy P/S 6.3 with negative P/E for 18 year old non-innovating company that is already in the second phase of enshittification.
It would be really surprising given that all of the data up to 2020 is already out there. They made a deal to give a firehose of data to an ai company and it was only for 60 million.
