Reddit’s 50% Plunge Fails to Entice Dip Buyers as Growth Slows
www.bloomberg.com
The gloomy sentiment around Reddit Inc. has failed to dissipate after its shares fell 50% from a February high, with volatile technology stocks under pressure.

Summary

Reddit shares have dropped 50% from their February peak, when the stock had soared over 500% from its $34 IPO price last March.

Much of the early enthusiasm came from AI-related deals allowing Reddit’s content to be used for training models, but recent doubts about long-term growth in the AI sector have dimmed that optimism.

Analysts remain skeptical and some call the stock “super overvalued,” noting Reddit still is not making any money.

Market uncertainty and early investor sell-offs continue to weigh on Reddit and the broader tech sector.

Non-paywall link

  • barneypiccolo@lemm.eeEnglish
    29·
    1 day ago

    After the Inauguration, they had a bloodbath in February, permabanning many long-term, high karma accounts like mine (12yrs, 900K+).

    These were the members who built Reddit into what it was, and after over a decade of high volume posting without getting banned, suddenly all of us made comments that earned permanent bans in the same month. Yeah, that’s plausible.

    Now that they’ve ejected many if the members that made Reddit a lively place to debate, they’re stuck with novelty accounts, puns, bots, Russian Karma Farmers, shitposters, trolls, and general bullshit. I just went over to read some subs I love, and literally the first post I read was complaining about how long they had to scroll to get past the stupid puns to get to the real discussion.

    Its been getting increasingly bad for a long time, but apparently it’s gotten far worse lately, now that they decided to get rid of the red meat and go vegan.

    I like Lemmy, but they don’t have anything close to the active guitar forums that Reddit had.

    • El_Azulito@lemmy.world
      9·
      1 day ago

      Can confirm—I was a member since 2010. Got banned for logically going after MAGATs. Apparently, that’s not allowed anymore. What’s happening to this country—that people don’t even seem to have the cognitive capacity or basic mental equipment to recognize the freedoms being stripped from them in real time—is beyond disillusioning. It’s disappointing, devastating, and honestly hard to watch. And seeing younger generations, raised on flashing lights and internet brainrot, now stepping into adulthood? Oof.