• Ashyr@sh.itjust.works
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    7 months ago

    I’m not a stock expert, but given its historic lack of profitability, that value has to be primarily speculative based on its usefulness for training ai.

    I would expect to see that number fall eventually.

    • Hyperreality@kbin.social
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      7 months ago

      I assume it’s also priced that way because it can be used for propaganda.

      Legacy media, hasn’t made a profit for years? There’s always some rich fascist cunt or nasty foreign government willing to buy it for more than it’s worth so they can push their agenda.

      It’s not about making money for them. It’s about power and influence.

        • Hyperreality@kbin.social
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          7 months ago

          My government isn’t particularly nasty, especially compared to some of the worst autocratic regimes, because they’re worried about the next election.

          Sucks if that isn’t the case for you.

    • Addv4@lemmy.world
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      7 months ago

      Or just as a marker of how reliant a lot of web denizens are to adding reddit to end of their search for more relevant user generated data. Either way, it’s numbers will fall, as a lot of the more recent data often isn’t correct.

    • Zippy@lemmy.world
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      7 months ago

      Their capitalization was I believe around 8 billion. This is the number they need to understandably recover from an investment point of view. If I was an investor in a risky type of investment like this. Risky mainly in that it could be a dog forever, I would want to see 25 prevent profit in their financial statements relatively quick.

      I am saying this all from an investment point of view of the people that now own it. More or less, Reddit needs to start showning profits of some 1.6 billion a year. That likely means they need 10 or 10s if billions in revenue per year. That will give you an idea what they will be developing and how advertising will need to be excessive. They will go the way of tiktok and other platforms in that emotional and divisive algorithms increase viewership.