• Ullallulloo@civilloquy.com
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      8 months ago

      Stocks are basically a percentage of ownership. The share price as a dollar amount is meaningless because it could be 1% of a company or 0.000000001%. The relevant number here is that Reddit is IPOing at a valuation of $5 billion (that stock buys a ¹⁄₁₅₀₀₀₀₀₀₀ interest), which all I can reply with is hahahahahahahaha

    • UnderpantsWeevil@lemmy.world
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      8 months ago

      $6.5B valuation (assuming a standard 20x EPS model) should imply in the neighborhood of $325M/year in revenue from a company that makes about a third of that.

      Either Reddit plans on tripling its revenues in the near future or this is an unrealistic target.

      • ColeSloth@discuss.tchncs.de
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        8 months ago

        It’s a sham, imo. I was on reddit for 15 years. It has peaked already. They won’t be able to get more for ads and I don’t believe their data for AI will go higher than what they’ve gotten for it this year. The only way they’ll be worth more is to cut overhead.