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Ditch reddit, join lemmy!
Absolutely savage
It’s a hard call on Reddit.
This article seems to leave out the reality that Reddit’s big win is data and an in built machine learning capability in what is good quality. For future AI and LLMs it’s actually a treasure trove of information that will only rise in value.
Realistically it’s had massively bad PR and issues but people still use it over Lemmy and many others, and Lemmy/others aren’t going to overcome it any time soon (if ever). So it doesn’t seem like it’s going to go away at end of day, and it’s still one of the best sources of information on the internet available.
At end of day it’s stocks so it’s coin flips all the way. No one beats the market consistently over time that doesn’t also utilise insider information.
“[moderators] may be able to leverage their influence within those communities to change the dynamics of the discourse within the communities or to disrupt the normal operation of their communities or other communities on our platform.”
And they can give you rando-bans out of nowhere, suddenly cutting you off from your topic of interest and exposing serious flaws with the entire site.
I’ve never shorted a stock before, but this is looking like a solid play.
Looks like it’s finally time to bite the bullet and watch the big short.
If you really haven’t… you need to. Better yet read the book. It should be required reading in America to see how the financial institutions fucked over America in 2008 and most of them got away with it or got the government to pay for it’s mismanagement, while a LOT of people got saddled with absolutely awful loans because all that mattered was creating and selling new debt.
I think the company may never monetize its platform without angering its users and the entire premise of Reddit is user-generated content.
Yep.
Also - reddit spends 55% of it’s budget on R&D?! WTAF!?!
It’s expensive to research and develop Spez’s apocalypse bunker.
Or as I like to call it: Super Weenie Hut Jr.
A decent search tool is right around the corner.
Unironically, yes. As part of Reddit’s deal with Google, they’re supposed to get access to some of Google’s search tools.
site:reddit.com
But Google is crap now for searching.
…and they make SOOO much money because of it. Companies are buying into it to push their results higher using SEO words and phrases to help.
No, it’s actually quite brilliant. Google results return mainly AI posts, and Reddit is now 90% AI regurgitated crap. It’s a match made in hell.
Have you ever tried to find something on a corporate Google drive?
It’s kind of impressive how bad Google is at search these days.
So, they are likely very poorly managed but, R&D is a common slushfund to keep your profit negative so you don’t have to pay taxes.
which makes sense if the r&d gives return on investment.
otherwise you’d be better off paying tax and taking the profits anyway.
Shouldn’t most of a midsize tech company’s budget be that?
That said, they’re terrible at it. And having worked with some of the folks they hired, I’m not totally surprised.
Hundreds of millions of dollars each year and in 20 years all they did is two redesigns, both of which sucked worse than what they had originally.
Oof.
Nowadays it’s llm powered bots all the way down.
Delivering ads to people who are armed up to the teeth with adblockers requires quite some research effort.
What else do you think they should spend their money on?
Serious question, they’re a social media site, their whole goal is to sell ads to consumers, which is all R&D cost and server cost. User acquisition at this point is minimal, Sales is basically “We have a lot of users, want to talk to them.” The goal is to create ways that sales can sell to consumers to make money.
Doesn’t help the consumer base is actively hostile to advertisements.
Oh just Forbes totally destroying Reddit.
Dude does NOT like reddit. I wonder which app he liked?
Capitalist isn’t human, he has stock in Facebook and Twitter so he doesn’t want Reddit competition
That you, Steve Huffman?
You honestly believe that? That this man fears reddit as the competition that might take on Facebook and Twitter? You seriously read this and that was your takeaway?
Great article and very thorough, if you have interest in the subject, I’d say it’s a must read, despite the source. And I 100% agree that reddit would be a very risky stock to buy, with more chance of becoming worthless than actually make you money.
This is completely disregarding my personal opinion that reddit quality has deteriorated for years, because sometimes even poor quality can be a great money maker, when it has achieved market dominance or critical mass in its segment, and no doubt reddit has done that.
a very risky stock to buy, with more chance of becoming worthless than actually make you money.
Sounds like a retail investor wet dream!
This is one of those rare cases where what is being said is less interesting than who says it.
What: Reddit stock is junk, the IPO will fail hard, and anyone investing on it is begging to lose money. I believe that most people discussing this in Lemmy already know that, so the info isn’t new here.
Who: Forbes. Forbes’ target audience is investors; greedy vulture capitalists love it. So if Forbes says “it’ll sink!”, investors are less eager to buy stock, and that sinks the stonks even further. So what Forbes says is often a self-fulfilling prophecy.
I’m glad that Forbes is doing it. I want to see Reddit die.
But you should also take into consideration that this article did not get a huge attention. It is almost a week old and has a few thousand viewers.
Note that this is a “contributor” post, which is essentially their sneaky wording for editorial. It isn’t a real Forbes article and anyone that knows the Forbes website won’t pay any attention to the article.
It will still have made the rounds, since it trended on HN: https://news.ycombinator.com/item?id=39667026
Great piece of marketing to have someone write the article, have people talk about it mistakenly as an actual Forbes article and drive interest in the stock that will make many clueless individuals suddenly have an interest in Reddit Stock.
News is news … any news whether good or bad, especially if it is controversial and agitates people, is good news for the company pushing their name.
Chances are … it was Reddit company marketers that set up this article to be featured on the Forbes website to drive attention to their company and their upcoming IPO.
Good catch - I didn’t pay attention to the fact that it’s a contributor post. Even then, I believe it to be still exposing the “Reddit is junk stock” (implied: “don’t buy it!”) discourse to potential investors. The title alone already does it, for those who skip past the article.
Yeah, too often Forbes will publish any old trash.
But it’s hard to argue with maths.
Very important distinction! Even I’ve written “contributor” posts on behalf is a company when I was moon lighting for a block chain startup. They’re not quite ads, but you very much can buy your way into that.
Yes it’s a bit confusing with that “Forbes” name?
But the article is good IMO, and has many 100% valid points.“Forbes” is not the Forbes you are referring to. It’s a blogging platform that shows the forbes name and claims they’re “Contributors” but isn’t actually “Forbes Magazine” which is what investors actually trust.
Basically this is just some shitbag pretending to be classy by hiding behind someone who sold him that space. There’s a ton of shit Video Game “Articles” on the site too, same story(masquerade), same value (low) , same respectability (none)
Don’t talk shit about Paul Tassi, he’s the best thing they have going on that part of the site (when he’s not going off about Dedstiny 2)
One of the most convincing points is …
competition has had many years to acquire Reddit prior to this IPO and have chosen not too. Acquiring Reddit now wouldn’t create all that much value for a competing social platform.
I sure as hell wouldn’t acquire a company for a product that has a near identical, free, open-source alternative that’s in active use.
Well, at least one person thought it was a good idea to acquire a Mastodon competitor, and they paid a pretty penny for it
0.1% of the users isn’t exactly a threat to their model.
Just like Reddit wasn’t a threat to Digg.
I absolutely would, for the users. But only if the userbase wasn’t full of Nazis and pedophiles, so reddit is still a no for me.
Compare to Lemmy’s userbase, which is anti-capitalist and clearly has a bone to pick with reddit. If I had to value Lemmy it would be for the cost of hardware and operations alone.
Which is kinda what Reddit should be valued at, because its a community oriented site, the value is never in the contributions. You can’t guarantee their engagement. They can always pack up and leave. Anyone thinking there’s a value in community oriented sites is being fooled.
I know people are gonna think “daaaamn, you just shit over lemmy too” but Lemmy makes no illusion of it, its a community funded effort, so the product offering is going to be suited to its audience, and this helps engagement. Reddit has no greater objective than tricking advertisers that people will visit.
Return Of
It never left, bro.
More specifically, Reddit notes in its S-1 that, as an emerging growth company, it will:
- present only two years of audited financial statements in the S-1,
- not be required to obtain an auditor’s attestation report on the company’s internal controls over financial reporting requirements of the Sarbanes-Oxley Act,
- provide less extensive disclosure about executive compensation arrangements, and
- will not require stockholder non-binding advisory votes on executive compensation or golden parachute arrangements,
That sure sounds like a solid investment
Also, the two classes of shares (new shares get 1 vote per share, existing shareholders get 10 per share)… what the fuck. Why would anyone buy that shit
No wonder they are trying to sell it to redditors.
From the article:
Reddit earns an Unattractive Stock Rating.
Of course it does, have you seen the average redditor?
Extremely well written and put together. Still, as harsh as it is, I think the author was still not harsh enough.
Future penny stock.
I think it’s worth less than that. But “reddit gold stock” doesn’t roll off the tongue as well.
I know what we all wish, but I’m pretty sure they are going to do ok. Especially with X down for the count… where will people flock? I’m not talking about fundamentals here, just consumer sentiment.
Yeah, they are getting that Google bump. Honestly I’d have bought a bit of IPO stock if it didn’t require giving reddit my real info. I’m not that desperate though.
Me too, I mean that, and the fact that I will never forgive them for what they did.
Only if the the accurate bot population is never disclosed. If people found out how much of Reddit is bots, the value would drop.
Is Reddit a crypto?
or a Ponzi scheme
It should be! All comments in a blockchain might actually be better than what they have now, i e censorship, banfest, and revisionism! Up 3000% in the last 5 minutes, solid investment.
It’s crazy. Used to be almost a lifestyle. Now it is just another failed social media project.
Lemmy is about 0.5% better, quality-wise. I would like to see wider adoption to up the average age a little because sometimes in here, damn…
Lemny is cool, but it is kind of a circle jerk. 30-50 year old middle class tech-job left-leaning males are probably 2/3 of most servers atm.
They have avatars linked to ETH NFTs. They also have a crypto tip system in some sub’s.
