• Neuromancer@lemm.ee
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        5 months ago

        To me it’s a sign of how out of whack the stock market is right now. Lemmy created the Reddit experience at a fraction of the cost. Yet Reddit spends millions a year doing it.

          • Neuromancer@lemm.ee
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            5 months ago

            Considering a large majority are bots, I don’t think that is their issue. Until their numbers are public, we won’t be able to see the acquisition cost.

            • infinitepcg@lemmy.world
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              5 months ago

              I don’t think the number of bots matters much, there are much more real people on Twitter than on Mastodon. It’s not an issue for Twitter because they already are the platform where everyone else is. I’m optimistic about Mastodon, it already has the better UX and the better business model and I think it will slowly attract more users over time and eventually reach the relevance that Twitter had at its peak.

              • Neuromancer@lemm.ee
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                5 months ago

                and twitter wasn’t worth 44 billion dollars. They also were not profitable.

                Reddit is not worth 5 billion dollars. A few years ago they claimed 10 billion.

                People need to stop assigning such high valuations as this is what creates billionaires when the value isn’t there.

                • infinitepcg@lemmy.world
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                  5 months ago

                  It’s hard to tell how much a platform is worth, arguably the value of Twitter was 44B, since someone was willing to pay that.

                  The good news is, if you’re really certain that Reddit is overvalued, you’ll soon be able to short it and get rich if you end up being right!

                  • Neuromancer@lemm.ee
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                    5 months ago

                    I don’t short stocks. I invest in companies I believe in and that provide value. That’s why I won’t invest in Reddit. I don’t believe in the company or the people running it. I have a few odd ball stocks like Google that I don’t believe in but overall they treat their employees well and they have a plan for success. I’m a big fan of their 5% policy. I just overall don’t like their model.

      • Neuromancer@lemm.ee
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        5 months ago

        Some huge validation. It’s not profitability. It’s does it make sense. Many companies forgo profit for growth. That’s common. Wework never made sense at its valuation to me.

        Same with Resdit. What is reddits path to profitability ? What value does it create? With their admins and mods being dipshits. It’s a liability to a company and not an asset. I would never buy from a company advertising on Reddit.

      • Neuromancer@lemm.ee
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        5 months ago

        It has no profit, no path to profit and most the users are bots. If advertisers paid attention, they’d realize it’s with next to nothing