The entire stock market has become a meme stock pyramid scheme. No price makes sense; it’s all glorified gambling making life on this planet worse for most living things.
- - ⚜︎ arscyni.cc: modernity ∝ nature.
Comment on Reddit stock falls for second day as references to its content in ChatGPT responses plummet
calliope@retrolemmy.com 3 weeks ago
Huh.
Does anyone else think that ChatGPT is still using the data, they’re just not referencing Reddit directly?
This is how you can tell Reddit’s $200+/share price is insane. Over 10% of its value dropped based on a different unprofitable company’s references to ingested content.
Yikes!!
arsCynic@lemmy.ml 2 weeks ago
Taldan@lemmy.world 3 weeks ago
Yes, but Oracle’s stock skyrocketed based on the unprofitable OpenAI promising to buy >100B worth of AI data center space from Oracle. Nvidia stock also surged on the news, since Oracle builds those data centers with Nvidia chips
Obviously OpenAI doesn’t have the money to pay Oracle themselves, so Nvidia has helpfully given them the money
So now we have an incredibly large cyclic corporate dependency of money from Nvidia -> OpenAI -> Oracle, then back to Nvidia. Definitely not a financial disaster waiting to happen
UnderpantsWeevil@lemmy.world 2 weeks ago
They haven’t even spent the fucking money yet. It’s just announcements of intentions, with a fraction of that $100B in outlays. Nobody seems to want to say who gets to be the one holding the $100B at the end of it, either.
Presumably they’ll all just do a stock swap and tell their vendors “We’re good for it, check’s in the mail”?
NuXCOM_90Percent@lemmy.zip 3 weeks ago
While I don’t agree with the reddit valuation to begin with…
that is actually how the stock market “should” work? Reddit is a company that, at its core, produces data to sell to other companies. If other companies choose to (say they are not going to) use that data, then the value of reddit drops. That is literally supply and demand.
UnderpantsWeevil@lemmy.world 2 weeks ago
This is how you can tell Reddit’s $200+/share price is insane.
Well, that and the P/E is 180. Typical target P/E on a stock is 15-20, depending on your anticipation of its growth. But we’re expected to believe Reddit’s earnings will be 9x their current income in… some nebulous amount of time?
Like, its silly to get excited about a company this hyperinflated seeing a tiny slide off its new peak. But also, you can’t help be bearish on a firm this flimsy.
rafoix@lemmy.zip 3 weeks ago
Reddit’s value is its ability to use bots to manipulate and distribute information. It’s just like Twitter, meta and all the other social media platforms.
FlexibleToast@lemmy.world 3 weeks ago
No, it’s value is that users have up voted and down voted good and bad data. This gives the AI training data that has been crowd sourced by humans. Bots manipulating votes would destroy the value of Reddit.
rafoix@lemmy.zip 3 weeks ago
Bots have been controlling votes on Reddit for years. It costs about $50 to get to the front page of Reddit.
NuXCOM_90Percent@lemmy.zip 2 weeks ago
Which is also generally very detectable (if you actually care) and is generally used to push (monetized) social media and not the answer to “what is the difference between normal and merino wool?” and so forth.
The vast majority of the “user” interaction and memes is not the product (at play. it IS useful for societal manipulation but there are better platforms for that). It is all those useful questions and answers that people get pissy about folk deleting the answers to.
Because people, generally, weren’t searching for
team edward or jacob redditbut insteadthe fuck is a renesme redditorLED versus fluourescent bulbs redditand so forth. And the community labeling of the latter is generally REALLY good.M1ch431@slrpnk.net 2 weeks ago
There are absolutely bot vote manipulation campaigns happened.
See this: old.reddit.com/…/why_are_we_all_just_accepting_me…
FlexibleToast@lemmy.world 2 weeks ago
Of course there are. That doesn’t mean the majority of the site is compromised.
Tollana1234567@lemmy.today 2 weeks ago
havnt they already destroyed the value of reddit, the bots already have massive hordes of downvoting/voting going on.
BakerBagel@midwest.social 3 weeks ago
Ok, so how does a shareholder benefit from that? My company that pays people to stomp on kittens at my kitten stomping factory has value in that in gives people jobs and controls the feral cat population, but it creates no profit for the shareholders.
ieGod@lemmy.zip 3 weeks ago
Yeah reddit’s a weird one. Their financials, aside from this year, are also horrendous. Not sure what value they really bring.
Prove_your_argument@piefed.social 3 weeks ago
The ads/manipulation does a thing that helps you attain profit or power. You want to manipulate what people see and pay for… so you pay reddit to allow you to mass deploy bots bypassing moderator levers. They have the community, you have the objective, you pay for the help of doing this and they probably have their own bot farms included.
They can even internally flag these entries as bots and use their AI partnerships to analyze what works on users and what doesn’t to trigger a specific response, and to avoid using techniques that get called out as bots.
They have their public ‘sponsored’ content, but I promise for big spenders they have a program that has no sponsorship callout. They probably brand it with nice fancy marketing terminology that makes it sound like you’re an angel doing god’s work by driving conversions or some stupid shit.
BakerBagel@midwest.social 2 weeks ago
I understand that Reddit has value to an individual or small board that can control what is posted to reddit. What i am saying is that Reddit’s value is entirely in soft power and has no actual path to profitablity. If i am Condé Nast then i can benefit from owning reddit. But Reddit will never pay a dividend, so buying stock in the company is worthless unless you are convinced that some idiot will pay more for it down the road.
rafoix@lemmy.zip 3 weeks ago
Reddit shareholders also own a lot of shares in much more lucrative industries.
BakerBagel@midwest.social 2 weeks ago
I didn’t ask about their other shares. I asked how Reddit’s soft power is able to actually benefit shareholders. I understand how it benefits Spez and those who make the actual decisions at reddit, but if I own 400 shares of Reddit, how do i actually benefit since Reddit will never pay a dividend since it will never actually be profitable
NuXCOM_90Percent@lemmy.zip 2 weeks ago
Stock value go up.
I assume the reddit stock doesn’t pay dividends based on profits. But if you bought for 10 dollars and now it is 500 dollars? You can sell some of that stuck to people hoping it will go up to 1000 dollars for a solid profit. And so forth.
BakerBagel@midwest.social 2 weeks ago
I understand how stocks work. Reddit stock is just a legitimizes greater fool scam as no one will ever get a dividend or see any return in their investment short of managing to sell the stock for more than they bought it. Reddit is absolutely worthless in an strictly economic sense. It’s value is soley in societial and political ways
Tollana1234567@lemmy.today 2 weeks ago
ability to allow bot propaganda to infest the subreddits more easily(especially politics and news)