We recently compiled a list of the 10 Firms Suffer Steep Downfall on Monday. In this article, we are going to take a look at where Reddit, Inc. (NYSE:RDDT) stands against the other stocks. Ten companies kicked off Monday’s trading in a bloodbath, mirroring the broader market pessimism, with valuations slashed by double digits mostly due […]
  • Pyr_Pressure@lemmy.ca
    4·
    12 hours ago

    Last I heard though they still weren’t profitable, but that was awhile ago. Has that changed?

    They have gone done in quality an incredible amount just to get profitable, I can’t see them increasing in profit consistently…

    • oxjox@lemmy.mlEnglish
      2·
      4 hours ago

      Right. I had to edit my initial comment to replace ‘profit’ with ‘revenue’. Profit is down for the year (increased losses) but revenue is up. It seems to me (not an expert) that they’re investing more in their platform while it becomes even more popular. Their stock may very well skyrocket in the near future.

      From the article:

      Last year, Reddit, Inc. (NYSE:RDDT) saw net losses expand by 433 percent to $484.27 million from the $90.82 million registered in 2023, despite revenues growing by 62 percent to $1.3 billion from $804 million.

      However, it recorded a 283.7-percent jump in its net income for the fourth quarter last year at $71 million versus $18.5 million in the same period a year earlier. Revenues for the quarter also surged by 71 percent to $427.7 million versus $249.8 million.

      And a quick search shows “Reddit’s daily active user count has grown by 47.27% since Q3 2023.” And they’ve doubled their daily users in four years.
      https://backlinko.com/reddit-users

      And this should say a lot about a lot of thing today…

      When it comes to daily Reddit app usage, only 7% of Reddit users opened the app every day in Q4 2023. To put in perspective, other social media platforms have a higher share of engaged users who open the app every day, specifically “X/Twitter (18%), Snapchat (25%), Facebook, TikTok (32%), and Instagram (43%)”.

      Only 7% of users opened the app every day. That’s a huge opportunity for growth. And how do they drive growth? Presumably the same way other social platforms have - quicker content consumption that increases emotional engagement.

    • Voroxpete@sh.itjust.works
      1·
      4 hours ago

      Profit stopped mattering a while ago.

      Demonstrating “growth” is the only thing that’s important. A promise of possible, potential future profit is valued more highly by investors than actual profit is. The stock market was never especially rational, but all remaining rationality vanished over the last ten years.