If I had to guess Reddit must be up against the wall to show growth - which is going to be pretty difficult if you already have most people who use the internet. They, like any other company with maxed out potential, are likely going to start their slow march to decline soon.
Why must everything have to be financially valuable to these fucking people? Why can’t a service just exist to make people happy? Capitalism eventually ruins everything, and it’s exhausting.
To be fair, it’s an investment firm evaluating the financial evaluation of a publicly traded company, that’s like asking a corporation why they care about profits. On principle I agree that not everything in humanity needs a financial value to have value to humans.
Yes, sorry, my original comment wasn’t very clear. I meant in general. Reddit is a fun(ish) place to spend some time that is likely to be shafted because some people want to get their money’s worth to add to their already towering piles of wealth.
The recent significant drop in Reddit’s valuation implies a fundamental flaw in their valuation strategy, particularly when it comes to assessing the value of a tech company. Tech companies often appear to be overvalued and face difficulties in sustaining their valuation growth once they’ve reached their peak.
The biggest modifier in a tech company’s valuation is the market, and despite the smoke and mirrors, the market is easily down 40%.
Anyone who has gone outside in the last 2 years knows this, but politicians so disconnected from reality still sing the song and dance.
Could you not argue that tech company valuation is disconnected from reality too; if the biggest modifier of its valuation is not based on revenue/profitability of the company but rather on the market in general?
