Reddit's 50% Stock-Price Plunge Fails to Entice Buyers as Growth Slows (yahoo.com)
- Reference: 0176859587
- News link: https://tech.slashdot.org/story/25/03/29/2152217/reddits-50-stock-price-plunge-fails-to-entice-buyers-as-growth-slows
- Source link: https://finance.yahoo.com/news/reddit-50-plunge-fails-entice-114144562.html
And then this week, it dropped another 10%, [2]reports Bloomberg , citing both the phenomenon of "volatile technology stocks under pressure" — but also specifically "the gloomy sentiment around Reddit..."
> The social media platform has struggled to recover since an earnings report in February showed that it is failing to keep up with larger digital advertising peers such as Meta Platforms Inc. and Alphabet Inc.'s Google, which have higher user figures. Reddit's outlook seemed precarious because its U.S. traffic took a hit from a change in Google's search algorithm.
>
> In recent weeks, the short interest in Reddit — a proxy for the volume of bets against the company — has ticked up, and forecasts for the company's share price have fallen. One analyst opened coverage of Reddit this month with a recommendation that investors sell the shares, in part due to the company's heavy reliance on Google. Reddit shares fell more than 5% in intraday trading Friday. "It's been super overvalued," Bob Lang, founder and chief options analyst at Explosive Options said of Reddit. "Their growth rate is very strong, but they still are not making any money." Reddit had a GAAP earnings per share loss of $3.33 in 2024, but reported two consecutive quarters of positive GAAP EPS in the second half of the year...
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> At its February peak, Reddit's stock had risen over 500% from the $34 initial public offering price last March. Some of the enthusiasm was due to a series of deals in which Reddit was paid to allow its content to be used for training artificial intelligence models. More recently, though, there have been questions about the long-term growth prospects for the artificial intelligence industry.
"On Wall Street, the average price target from analysts has fallen to about $195 from $207 a month ago," the article points out. "That still offers a roughly $85 upside from where shares closed following Thursday's 8% slump..."
Meanwhile Reuters reported that [3]more than 33,000 U.S. Reddit users experienced disruptions on Thursday according to Downdetector.com. "A Reddit spokesperson said the outage was due to a bug in a recent update, which has now been fixed."
[1] https://slashdot.org/story/24/03/21/0430238/reddit-prices-ipo-at-34-per-share-the-top-of-the-range
[2] https://finance.yahoo.com/news/reddit-50-plunge-fails-entice-114144562.html
[3] https://www.reuters.com/technology/musks-x-down-thousands-users-us-downdetector-shows-2025-03-27/
Re: (Score:1)
Get a grip pal.
Did your mommy have any babies that survived?
Managed by little dictators (Score:2, Insightful)
who write their own subreddit rules and make it perfectly clear that you're not welcome if you have another opinion.
The purpose of r/Ukraine is to amplify Ukrainian voices.
Sharing of russian narratives in any way, shape or form is banned.
Just like democracy, it's so much fun if everyone would just agree with you.
Re: (Score:2)
You're incoherent. You claim it's neutered by the far-right but complain about neutering Musk-related posts?
Re: (Score:3)
Free speech absolutist Elon got his feefees hurt. [1]https://www.theverge.com/comma... [theverge.com]
[1] https://www.theverge.com/command-line-newsletter/637083/elon-musk-reddit-ceo-content-moderation
Here is your chance, Slashdot! (Score:2, Interesting)
Nature abhors a vacuum.
Re: Nature abhors a vacuum (Score:5, Funny)
Shhh: My roomba is listening!
Slashdot is too vacuous to fill that vacuum. (Score:2)
Current management pack it with lame space filler and shit quality general news articles to do as little simulated work as practical.
Either they're vain enough to imagine they're doing a good job or their real objective was to keep this place irrelevant. Few current readers were here when it was still a tech site.
I
It’s a series of chatrooms (Score:2)
And that’s about it. The concept has been around since the 1960s, and not much has changed when you take a really honest look at it. Any company that bases it’s core business around chatrooms will be perpetually in danger of being replaced because the product is so easy and simple. Lookin’ at you, Facebook/Meta and Twitter/X. They change their name every so often to make it feel “new”.
Wait til Wednesday (Score:2)
You know, Crash-Down-Day for stocks.
It's Reddit FFS (Score:3)
Before committing any funding to that stock, it would be wise to at least visit the site and get a feel
for what it really is first. Doing so would probably turn away at least 50% of potential investors.
I wouldn't invest YOUR money in Reddit even if you gave it to me for free.
Re:It's Reddit FFS (Score:4, Interesting)
Reddit is like drinking alcohol.
We know it's bad for us. It sort of seems "fun" at the time but later, we regret being near it.
Reddit is literally one of the worst sites ever (Score:3)
It's so toxic and insufferable I'm hesitant to go there just to get technical info or even super-clinical non-political information. It's like trying to stay clean on the subway. There isn't really going to be any clean way to get in and out short of a space suit. Absolutely everything is bookend'd with some kind of politics-oriented sniping or bias. I wonder if this is what it was like in Europe during the Reformation. Like, did Catholics and Protestants just talk mad shit non-stop and lick shots at each
Re: (Score:2)
Reddit committed suicide at least a decade ago. Now it's worth about as much as /.
It's too easy for AI companies to steal content (Score:3)
Reddit's initial high valuation was on the premise that they would sell their user data and posts to train AI. But it's become stupidly obvious that hey I companies don't have to pay a dime for the content they consume. That's something that only gets done by plebs like you and me.
Re: (Score:1)
When training an AI, who wants it trained on random reddit (or rsilvergun) posts? If its trained on posts like yours, no wonder it halluncinates.
It's all pump and dump nowadays (Score:1)
Hey, you forgot about mentioning "pump and dump"!
You are a non-functional autistic and you keep on posting the same things in loops and some sick people abuse and manipulate you by encouraging you to keep on doing that because it fits their crazy extreme-leftist narrative even if the you very rarely makes any sense in your posts and just keeps on exposing your mental problems. What a shame such people are, manipulating mentally deficient patients! Disgusting! They should be ashamed of themselves!
references:
Re: (Score:2)
training AI on random unfiltered reddit Data is perhaps some of the LEAST valuable sources of information on the web. The idea that they thought it was valuable is laughable.
Re: (Score:2)
Crap is readily available and free, so that's what "AI" will be trained on.
The idea that something like this can attract hundreds of billions in "investment" is laughable, yet here we are. It does.
People like crap.