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It had no effect. These write downs are likely a byproduct of the macro environment. The cheap money has run out and the stock market is taking a hit as inter
by BaseballPhysics 3y ago
It had no effect.
These write downs are likely a byproduct of the macro environment. The cheap money has run out and the stock market is taking a hit as interest rates have climbed. Fidelity's valuations reflect what they believe they can sell their share for, and now they believe they'd sell it for less.
If anything, my bet is Spez has been seeing that writing on the wall for a while (either because he read the tea leaves or because of signalling from Reddit's investors) and the API pricing changes are part of a desperate strategy to boost cashflow and hopefully goose their valuation in advance of a hoped-for IPO.
- hightrix 3y agoIf the API changes were meant to actually drive revenue rather than to simply put 3rd party apps out of business, then the incompetence in reddit is stronger than I previously imagined. Every single move they have made regarding this change has been the wrong one. Incompetence is reddit's lifeblood, from an outside perspective.
- BaseballPhysics 3y ago> If the API changes were meant to actually drive revenue rather than to simply put 3rd party apps out of business... I can't think of a good reason to want to put 3PAs out of business given, based on what we know, those users represent a small minority of total Reddit users (and therefore a small fraction of ad impressions). So the only logical conclusion, to me, is that they see revenue potential on monetizing API access, and 3PAs just happen to be in the blast radius. I'm not saying they'll ultimately be right. All I'm saying is, on its face, it does make sense.