this post was submitted on 12 Mar 2024
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Reddit: Return Of The Junk Stock IPO (www.forbes.com)
submitted 9 months ago by [email protected] to c/[email protected]
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[โ€“] [email protected] 3 points 9 months ago (1 children)

$6.5B valuation (assuming a standard 20x EPS model) should imply in the neighborhood of $325M/year in revenue from a company that makes about a third of that.

Either Reddit plans on tripling its revenues in the near future or this is an unrealistic target.

[โ€“] [email protected] 6 points 9 months ago

It's a sham, imo. I was on reddit for 15 years. It has peaked already. They won't be able to get more for ads and I don't believe their data for AI will go higher than what they've gotten for it this year. The only way they'll be worth more is to cut overhead.