I saw that Reddit's IPO opened at 38% higher than expected with a $8.5BN Market Cap. My guess for it being high is that they have a lot of data to sell to LLMs at all the AI companies that want an edge, but what do I know. Thoughts?
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Any CEO who manages to take a 9 figure comp package whilst also convincing thousands of left wing losers to moderate the website for free is a CEO who investors believe in
I get much joy from the ugly deformed freaks / leftists (though I repeat myself) who moderate reddit for free so that the CEO can have a 193m pay package. absolutely hysterical
Please share your full name and photo so we can see how much of a good looking stud you are. I have a feeling you are not going to do either of these things.
this is the creepy response I'd expect from the WSO resident leftist. wouldn't surprise me one bit if you are a reddit moderator honestly
I am going to guess that you are a typical conservative WSO guy who is single, ugly and lonely.
this you bro?
Why is this any different than any other company? Aside from your irrational hate boner for "leftists" it seems like there is far more evidence that Reddit's CEO is deserving of his pay than many others. I mean, at least the IPO went well!
I mean, every right wing Elon Musk fanboy is basically supporting him in absolutely destroying the value of Tesla stock so he can throw a tantrum in regards to X. At least the Reddit moderators get to be a part of a community of interests... you know, one of the foundational parts of the internet, before venture capital and "tech" started doing their best to ruin it.
I think I read somewhere that they were thinking about offering moderators some equity, but I can't remember if it was legit
Dont see a reason they would need to. One mod wants $$$ or equity then simply remove and another will happily take their place. Redditors have absolutely nothing going for them so any ounce of power they can get they will preciously hold onto
Tell me you've never been on reddit without telling me you've never been on reddit....
You're aware that reddit has subforums for plenty of conservative topics ranging from guns/2fa, religion, conservative politics right? And then entirely apolitical subreddits for every single sports team, countries/cities/states, every make/model of car basically.... I mean how much of a moron do you have to be to think moderating is just for "left wing losers". The primary job of moderation, believe it or not, is to just stop bots and unscrupulous people from scamming and spamming.
Some of these people see almost EVERYTHING through a political spectrum, regardless of the topic. Most people who follow sports know that Reddit has subs for every team with hundreds of thousands of people. No one talks politics in these subs. I kind of doubt that these guys into are sports. They mainly know that there are liberal subs on Reddit but that is about it. They do not like moderators even they try to make the subs more useful. They probably do not like the mods here either because they interfere with their freedom of speech or in other words, their freedom to act like an asshole.
You're an actual NPC if you're unaware of the fact that reddit moderators skew heavily left wing and consistently censor conservative posts/comments and forums themselves (donald trump forum was deleted for no reason, an example of censoring conservative discussion).
I'm baffled that they spent $438M on R&D last year...
It was probably all invested into finding new ways to collect data from users
I would imagine the infrastructure requirements and costs must be staggering given the sheer # of users, different forms of content they host, developer tools they support, and data they're collecting. But it's still a fair point, their general interface and and UX hasn't changed in nearly a decade...
There's a lot of pent up demand, a lot of dry powder waiting for the IPO window to open. Think Astera popped too
Too much liquidity sloshing out there once again. I also do think the fact that they can sell their data for "AI purposes" also was a big driver (what a joke). At the end of the day, cool concept, not a great business.
It's AI and LLM contracts. Wouldn't be surprised if those started drying up in a few years
Reddit's multiple is worth around the same as Snap and Twitter. So not much
I'm noticing a trend recently of IPO's with low float (Mobileye, Arm, Reddit). This lets you take money only from the investors most willing to pay, and it makes it really hard to short
Downside is the company doesn't get much cash on their balance sheet
That would be a very interesting thesis to test out...
Not much to read into regarding the company. Clearly lots of demand for the stock but the first day’s (even the first 6-18 months) performance doesn’t indicate how the business or stock will perform in the long run.
The fact that it popped does indicate the more companies could go public, but those big private companies are still emotionally tethered to their last financing round’s valuation. Reddit and Instacart raised at big discounts to their last private valuation, but others may opt to wait longer and grow into their last mark.
Has anyone else in HF/PE/VC been contacted by their SDRs? They're branching out trying to sell user sentiment as a data product to sponsors/investors with tag lines like "2/3 Reddit users make financial choices based on content they find on our website". No idea how successful that's been but they're billing it as a userbase that's not found across other social media platforms (dubious) and I'd assume they must be seeing some traction if they're doing it at all.
Wow, didn't realize they've spun up a full data sales team and are no less going after finance. TBH this is probably the only path to profitability for them as I don't think ads alone can pay the bills and when you look at companies like Placer they think they can make a huge amount of money too.
Have you taken a demo with them?
No interest whatsoever, I don't touch anything related to consumer/retail investors and know what degens many of those users making "financial decisions" are (I frequented r/wsb in the OG days). I don't think it's going to be a hugely successful move, especially if the rumors I hear about the % of their users that are bots are even slightly accurate.
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