SNOOcalypse - document, discuss, and promote the downfall of Reddit.

1337 readers

1 users here now

SNOOcalypse is closing down. If you wish to talk about Reddit, check out [email protected], [email protected] and [email protected].

This community welcomes anyone who wants to see Reddit gone. Nuke the Snoo!

When sharing links, please also share an archived version of the target of your link.

Rules:

Follow lemmy.ml's global rules and code of conduct.
Keep it on-topic.
Don't promote illegal stuff here.
Don't be stupid, noisy, obnoxious or obtuse (S.N.O.O.)
Have fun, and enjoy the popcorn! 🍿

founded 1 year ago

MODERATORS

[email protected]

454

In unsurprising news, Reddit prepares IPO (www.businessinsider.com)

submitted 10 months ago by [email protected] to c/[email protected]

165 comments fedilink hide all child comments

Now the social media platform is aiming for an IPO in the first quarter of 2024 with a valuation of $15 billion, and has been in talks with potential investors like Goldman Sachs and and Morgan Stanley, per Bloomberg.

you are viewing a single comment's thread
view the rest of the comments

[–] [email protected] 17 points 10 months ago

Honestly, I don’t know on this one. It’s tough to guess on internet companies, especially social media.

I think they’re facing pretty strong headwinds that have nothing to do with how we may personally feel about the company. Going off of memory, their valuation was slashed between their first talking about an IPO in 2022 and April-ish of 2023, which is when they started with the push towards monetization and which eventually led to shutting down the API to third party apps. I’m not sure where the $18B falls on that spectrum. I’m also not sure about the underlying metrics, like revenue per user, costs of acquiring new users, and so on. I don’t know if their growth has slowed or accelerated since the API change, but I also don’t think there’s a real competitor at this point (lemmy hasn’t reached critical mass and community fragmentation will probably mean it never will).

On the other hand, I’ve felt since last April or so that the stakeholders are looking to exit. It really feels like spez mismanages the company and is just looking to cash out, take the billion or two and move on to his next thing, after which it will be run by a b-school type who will run it into the ground.

All of which is to say I wouldn’t buy it for my retirement portfolio, but I also wouldn’t short it on opening day. I do suspect they’re underinvested in trust and safety and will run afoul of regulatory bodies, and Reddit is not the household name that Twitter is, so they’ll be easier to ban from markets.