Fuck Spez, and all that, but really, this chart isn’t much different from nearly every stock for the same time period.
I think that dip has more to do with Trump creating uncertainty in the market overall than any specific Reddit trend/policy.
Kinda…
For comparison, the S&P 500 felt 4% on the period, Nasdaq felt 7%. So 30% is really noteworth, Redddit is one of the stocks pulling the index down. But it’s not alone, and blaming it on any random cause isn’t right.
Yah, I was going to say the same thing. S&P not only dropped much less, it dropped at a different time and slope. S&P dropped in line with when Trump took office and has been relatively flat. Reddit has been on a constant decline since the start of the year.
It coincidentally happens concurrently with the purges
Do you mean “fell”?
It’s not going to be representative unless you compare it to the same cohort - tech stocks.
Also, the uncertainty should have been strong in import export or related companies. Tariffs causing issues, right? Reddit should have been somewhat resistant to that type of speculation.
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Ooopsie, there goes your money. Not exactly a good idea to cross your community, is it?
Free Luigi.
Once upon a time I went to Reddit as a Digg refugee. Now I have come to Lemmy as a Reddit refugee.
Your username just hit me right in the feels
" you didn’t really believe that did you?"
Yes, I fucking did. And now I’m devastated to learn that cute harmless little hippos don’t live in my house. 😭
I miss media literacy Ads like the house hippo
IMO, anybody who invested is a fool. AFAIK the only user-generated content companies that have made the model work are Google (YouTube) and Meta, and that’s because they’re the advertising duopoly that controls the Internet. Maybe TikTok, but that one’s a mess. Twitter couldn’t do it, even before Elon they were a big money loser.
So, what does Reddit have that other companies don’t? Nothing really. And now that they did their IPO their investors are going to start demanding growth, which means enshittification. But, unlike YouTube where there’s no viable competitor, or Facebook / Instagram where there are network effects locking people in. Reddit users are mostly pseudonymous. IMO that also means much more likely to jump to another platform like Lemmy.
I think Twitter did finally make some profit before Muskrat takeover, I remember reading a headline that it was finally profitable after 10 years or something
I seem to remember that they were just barely making it on one measure, and failing heavily on another. Like, they were just barely cash flow positive, but had massive debts and weren’t turning a profit. Or they were turning a profit on paper but their cash flow was massively negative.
They’re always measures that can be gamed. Like, you can be cash flow positive if you sell a bunch of debt for cash. You’re temporarily cash flow positive but definitely not profitable. Or, you can sell a bunch of widgets and mark down the revenue, but since you’re still waiting to get paid your cash flow is negative. That can be deceptive if you know a high percentage of sales are going to be returned.
Their IPO was priced below $100, thus far the model still works. I’m guessing they’ll go the way of facebook, with dwindling user engagement but somewhat stable ad revenue since people go there out of habit or through links from random google searches for obscure topics.
But Facebook has network effects that basically lock people in. If they leave they leave their friends and family behind. It causes a collective action problem. If you leave, your friends and family stay behind. You want some way to move everybody all at once, and that’s really hard.
But, because Reddit is based on pseudonyms, people don’t tend to form attachments the same way, at least IMO. That means you feel less locked in. As long as you can find people talking about those same subjects elsewhere, you aren’t as locked in.
In addition, Meta is part of the online ad duopoly along with Google. They’re really good at monetizing their users. Reddit is just a smallish website and can’t compete with that.
For now, random google searches take people there. But, that’s based on the idea Reddit isn’t going to lock results behind a paywall / registration wall, or Google isn’t just going to slurp up the results and present them so someone never has to click on the Reddit link.
They’re not below the IPO price yet, but they certainly aren’t growing all that fast. They spent most of the time since the IPO barely moving, then they had a 3 month growth in their stock price, followed by a huge dip. The investors want growth, and growth requires enshittification, and enshittification will make people leave.
Very good point, I didn’t really consider that. And now I feel bad for not replying more to your elaborate response, but there’s simply nothing else I could add.
Speaking of YouTube…I got banned yesterday for telling a troll he yapped like Pootang the Tiny’s performing poodles. Apparently that was harassment and cyberbullying…
Reddit seems like the worst company to invest in. The only thing they have of value is content created by other people in the past.
It’s not like the other social media platforms where people get trapped there for various reasons. Companies stay on Twitter, for instance, because they have followers and marketing that depends on it. I stay on instagram cause my wife and kids share things as well as organizations.
There was nothing keeping me on Reddit outside of the content. I don’t need to be on Reddit to get that content. And enough people have left Reddit and started building that content on Lemmy.
The only thing they have of value is content created by other people
This works great for YouTube, but Google is arguably the biggest ad company in the world. Just because an ad company with a sideline in user-generated content can make it work doesn’t mean that a user-generated content company trying to figure out advertising can make it work.
Not if used as a propaganda tool, much like rmFB, YouTube,etc
I mean there’s little point to become invested in reddit when they’re going skew that far right and then censor/delete and ban everything with appeals getting ignored.
Communities are having to over moderate. I can’t even say Fuck Christians or Billionaires shouldn’t exist without it being hate speech or violence, but rightiods get to spam their lgbtq hate. And the less said about violent Porn subs the better.
Truely a dark time 😮💨
Please people, if you are going to look at stock prices, look back a year, two, or more. Reddit was slightly up from its 5 year point when in October 2024, like many other stocks, it wildly went up. It isn’t yet back down to the pre-October level. Someone (Musk and fellow billionaires?) have been playing these markets since the last US election to game money out of everyone else. There was no value in the business to justify the jump, just a pump and dump scheme to graft money out of the lower classes/pension portfolios.
This!!
It annoys me so much when people show stocks of a few wees as evidence that a company is doing bad. You should look a year back or more.
The entire stock market is down, BUT LOOK AT THIS ONE STOCK WITH THIS ONE THING THAT 100% IS THE REASON!!
shortly after the article came out talking about how Reddit is bending the knee to Musky’s hissy fit, I received two notifications from Reddit; one, a 7-Day ban for “breaking multiple rules” but not telling me what actually happened, and after sending them an appeal asking what exactly I was banned for, I received the second notification, telling me that I was permanently banned for, again, “breaking multiple rules”.
as far as I’m concerned, I’m finally free.
Sounds like they are panicing if anything
Luckily it’s dropping again. Burn baby burn.
1M chart doesn’t show anything. We can see that the decline started on 7th Feb, together with US stock market in general. It has nothing to do with “Reddit siding with Musk”.
It does when you compare it to the market average.
You can’t make any decisions across one month only.
You can make comparisons, all boats are sinking, but a few of them are tied together, and one of the captains has a corkscrew.
What, you want them to wait until supporting fascism pays off?
Wut?
The drop started right around the first wave of bans. Fuck Reddit.
Meh, fuck em
I left however many days ago my Lemmy account says - from being a daily user ^
So it was me that caused it.
good job @sendprudes@lemm.ee
You’re gonna get so much ankle, hero.
I hope my dude is sitting down somewhere alone
Maybe this is a dumb question, but how does the day to day health of the reddit community affect the stock price? Wouldn’t a simpler explanation be that reddit stock is in decline like most other stocks right now because of the overall market uncertainty?
Stock indexes, typical stocks, are down about 10% from highs around that period.
It could indicate that investors don’t like these moves and see it as a risk for the future of the company. Or it could indicate that line goes up or down randomly, who knows, not the folks on wall street that’s for sure.
Stock prices are mostly speculation these days, thay don’t reflect the actual financial standing of a company, but more the public perception of the company. People get pissed at reddit, dump the shares they were holding and the demand drops, so the price goes down. …I think.
