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Why are users worth money if they're barely being monetized? Considering how big (and old) reddit already is, they should already be profitable, and hence shou
by Judgmentality 9y ago
Why are users worth money if they're barely being monetized? Considering how big (and old) reddit already is, they should already be profitable, and hence shouldn't need to raise money - unless they're planning something radical and expensive. Reddit is a cool site and wildly popular, but that doesn't mean it's going to make billions of dollars.
Also I suspect the site is increasingly populated with bots, not real users. I'd actually imagine the site is less popular this year in terms of real users than it was a year ago, although I have no way to know that and could be wrong. I'd need to see hard evidence to believe it hasn't had a rapidly growing bot population though.
- austenallred 9y agoBecause they have the potential to be monetized. I have wild success with Reddit ads even though you can tell the ads products never receive much love (or maybe that's just Reddit generally). Companies are valued based on discounted future cash flow. In other words, investors are betting that at some point in time Reddit will generate billions, even when adjusted for a discount for time. That's not crazy at all to me to see that happening.