A golden nugget I found on a Hackernews thread on the latest Reddit funding round.
"On a visitor perspective, this seems undervalued. This is a 50% or more discount to the market-cap/unique visitor ratio of Twitter, Snap, and Facebook.[1] And all the stats I've seen indicate much higher user engagement and time-on-site for Reddit compared to the other social platforms."
In terms of broad plot, this movie plays out again and again. Eyeballs, visitors, GMV, real estate NAV. Metrics get made up to rationalize whatever craziness prevails then & lots of smart folks either fall for it or falsely think they can hop on but get out in time.
Completely agree! It feels like a game of valuation for the sake of valuation. No profits? No problem! We will conjure a new metric that has no relation to profit or cash flow.
"Why does Reddit need funding? Legitimate question. What are they going to spend this money on? A direct ad sales team? I would assume it takes a somewhat small engineering and DevOps team to keep it running. Is there a huge roadmap of features that requiring $100m in engineering?"
A golden nugget I found on a Hackernews thread on the latest Reddit funding round.
"On a visitor perspective, this seems undervalued. This is a 50% or more discount to the market-cap/unique visitor ratio of Twitter, Snap, and Facebook.[1] And all the stats I've seen indicate much higher user engagement and time-on-site for Reddit compared to the other social platforms."
https://news.ycombinator.com/item?id=28157311
We're now dealing in market cap/unique visitor ratios.
In terms of broad plot, this movie plays out again and again. Eyeballs, visitors, GMV, real estate NAV. Metrics get made up to rationalize whatever craziness prevails then & lots of smart folks either fall for it or falsely think they can hop on but get out in time.
Completely agree! It feels like a game of valuation for the sake of valuation. No profits? No problem! We will conjure a new metric that has no relation to profit or cash flow.
On the flipside, someone also commented this:
"Why does Reddit need funding? Legitimate question. What are they going to spend this money on? A direct ad sales team? I would assume it takes a somewhat small engineering and DevOps team to keep it running. Is there a huge roadmap of features that requiring $100m in engineering?"
"Avocado toast, caramel macchiatos and AWS charges. Maybe legal costs too."
Sounds like this is true for a lot of tech startups :)
https://news.ycombinator.com/item?id=28163592
You nailed it..Byjus will buy it ..LOL
"Let me learn about Bitcoin" -Do you mean just Bitcoin or crypto/defi in general?
I'll go with latter since that'll rile up cryptevangelists more:-)
Haha..!
I am guilty of using a few of these while thinking of investing🙈