Comment on Reddit: Return Of The Junk Stock IPO

ColeSloth@discuss.tchncs.de ⁨8⁩ ⁨months⁩ ago

• Ullallulloo@civilloquy.com ⁨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 $6 billion, which all I can reply with is hahahahahahahaha

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  • ColeSloth@discuss.tchncs.de ⁨8⁩ ⁨months⁩ ago

    I am aware. It’s valuation was in the article.

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  • derpgon@programming.dev ⁨8⁩ ⁨months⁩ ago

    Well, either two values give the third. All one’s gotta know is two of: valuation, price per share, number of shares.

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• Kyrgizion@lemmy.world ⁨8⁩ ⁨months⁩ ago

  0.031 sounds more realistic

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  • dhork@lemmy.world ⁨8⁩ ⁨months⁩ ago

    It’s not quite that bad, the author buries this near the end:

    There’s 97%+ Downside if Growth Matches 2023

    Which if I read that correctly means he thinks a fair valuation of the stock is about 90 cents.

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    • ICastFist@programming.dev ⁨8⁩ ⁨months⁩ ago

      Image

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  • KingThrillgore@lemmy.ml ⁨8⁩ ⁨months⁩ ago

    0.00000031 more like

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• UnderpantsWeevil@lemmy.world ⁨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.

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  • ColeSloth@discuss.tchncs.de ⁨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.

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