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Their AI revenue seems to be the main reason for their IPO. I suspect that revenue source could go poof quite quickly.
by johng 3y ago
Their AI revenue seems to be the main reason for their IPO. I suspect that revenue source could go poof quite quickly.
- NickC25 3y agoMy point exactly. Markets are always forward looking. My guess is that the value of the AI data is effectively "priced in" as it's pretty much the sole reason for the IPO. Markets would look and say "well, ok, what's next?" and since Reddit most likely has no idea what is next, or even has the ability to create new products, the stock value would drop pretty hard. Single-product companies don't really work well when it comes to public markets, unless they come with pretty big growth upside in terms of recurring revenue and consumer market penetration.