• xodoh74984@lemmy.world
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    8 months ago

    The best part is that this whole thing is about having the “opportunity” to purchase reddit stock at its IPO price. This user generated content farm wouldn’t dare give away equity for free to users responsible for the site having any past, present, or future value.

    I’m not a finance person, but the only gambling I’d do on this company is hope that Wall Street pumps the price post-IPO so I can short it.

    My understanding is that the value of each reddit user is priced roughly at $2. A Facebook user is priced at roughly $40. Their only options to maybe be profitable are more enshittification, more users, or both. Or, you know, not paying hundreds of millions of dollars to the execs of an RSS feed with voting and comments.

    • GingaNinga@lemmy.world
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      8 months ago

      I bet wallstreetbets is going to pile into shorts out of the gate because who doesn’t want to stick it to reddit and its WSB lol. Then after a slumpy start some whale is going to blow up all those shorts and pump it like crazy and then everyone will buy panic calls and the early ones in will fade the top and screw over the call buyers on the way back down. Thats my prediction. Not touching this with someone else’s 10 foot pole lol

    • Nurgle@lemmy.world
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      8 months ago

      A Reddit user is $2 now, but they have terrible ad targeting. Reddit users volunteer troves of info about themselves, so even a modest effort to start tying all those user signals together could be a great boost to that number (which really wouldn’t take much). Plus monetizing that base for LLM data and you got a stew going. They’ll of course do the cash grabby enshitifying stuff too, but their user data is much more underutilized than facebooks at the moment.