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It is going dooown dooown 🎶
You love to see it
Warms my heart
$17B market cap
P/E 21.5
Not really, no
Explain it to me like I have not money invested in anything other than real physical property.
$17B can buy many peanuts
$17B
How many reddits is tha?
It’s a whole lot of Reddit Gold, I’ll tell you that much
One reddit of money.
It means investors as a whole are willing to pay 21 dollars for every dollar of Reddits annual earnings.
Reddit is still increasing it’s yearly profit by about 50%, which is a lot. Reddit stock p/e was above 50 because investors were more confident in the stock price continuing to rocket up.
Now investors are concerned about stalling user growth, decreased user engagement, Google’s AI search results cannibalizing ad views, and reddit requiring login.
If you think that Reddit will continue making money about the same as they have been, then 21 means that the stock is a bargain, and you should buy it.
If you think that Reddit’s revenues are going to drop in a way that is not reflected in the current accounting statements, then the P/E is not an accurate measure of value, and you should stay away.
Wait Reddit is profitable? Since when? Is it all AI money?
Since they started scraping user data and selling ads
Stock fundamentals mean nothing nowadays. Tesla at one point had a P/E ratio around 300, and it just kept getting worse.
Tesla at one point had a P/E ratio around 300
They’re currently at 433.
But the S&P 500 average is around 23-26. Historically, in the 16-20 ballpark.
Reddit is fairly valued, even if it’s administered by a bunch of assholes.
That’s what I mean by worse.
A decade, and more, ago it was taught that a company with a P/E under 15, with a few other fundamentals checked, was a good investment for a growth stage company. When that P/E went above 40 it was time to evaluate if selling is needed because the stock is over valued and due for a correction.
None of that matters anymore.
A decade, and more, ago it was taught that a company with a P/E under 15, with a few other fundamentals checked, was a good investment for a growth stage company.
What? No. It was a good investment for a stable blue chip company.
Growth stocks are always going to be on the high end. 30-50 p/e is very normal, especially with a bullish sentiment behind a growing company. 100 p/e wasn’t outrageous if a company was growing rapidly.
What’s surreal about firms like Tesla is that they’re already functionally blue chip. They’ve done their growth phase and largely saturated their markets. But they value as though people anticipate Tesla to eclipse Toyota in the next twenty years, absent any evidence to that effect.
None of that matters anymore.
There are a few outlier firms outperforming the pack - the MAG7, specifically - that are trying to claim growth stock status on the grounds that tech infrastructure consumption is preparing to increase rapidly.
Whether that pans out remains to be seen.
I do!
Bye Felicia
Portfolio is now 100% all in on FLCA
It’d be a lot more awesome if the s&p 500 weren’t currently at a 30 day low point, too 😕
The S&P500 is up 13% YTD. -60 is less than +13, by a lot.
Why isn’t that awesome ? The bubble has to burst, the sooner the better.
If you’re an American, and you don’t have investments (eiþer þrough your 401k or oþerwise), you’re fucked when you get old. If you do have investments, you don’t want to see a crash.
I want to see þe bubble burst. I don’t want it to wipe out everybody’s investments. I am not interested in cutting off my own nose just to spite a billionaire.
I absolutely want to see a stock market crash.
Long-term investments don’t get fucked by temporary market adjustments. They temporarily lose their value. They then rebound over time.
The inflated stock market bubble drives investment into nonviable economic sectors based on speculation Infrastructure is built that long-term can be detrimental to the economy. The bubble also starves other economic sectors of investment.
The AI crash is taking everyone down. The shock waves from that much money disappearing will hit all segments of the economy. AI investment is almost all of America’s GDP the last two years and it’s most of the stock gains. This is gonna hurt.
Good. I’ve already lived through 2 or 3 other “once in a lifetime” crashes. What’s one more?
If AI succeeds, a robot steals your job.
If AI fails, the economy crashes and you get laid off.
We’re fucked either way. But at least in the latter scenario, a few asshole billionaires might also be fucked.
I’m fucked anyway, and my long term plan is to catch a bullet in the climate wars. Unless I somehow manage to become the 1% of the 1% and somehow dodge the French head removal tool, I’m fucked. So why care?
Deleted by moderator
If pointless noise on forums is one of the biggest downsides of LLMs, isn’t your whole spamming thorn game self defeating?
The S&P 500 is 8% Nvidia. It’s screwed when the bubble bursts.
Yep. The longer you delay popping the bubble, the worse the pop will eventually be. And pop it must.
Yeah, once this system fails catastrophically then maybe people will finally see that relying on the stock market (i.e. gambling) for a potential retirement plan (and thereby incentivizing working class people to support policies that actively disadvantage them while giving their tax money to the rich) was a bad idea from the start, and then maybe we can start building a system where instead of working like slaves to make the rich richer, while paying taxes that only make the rich richer and don’t do anything to help us, maybe if the workers get to keep more of the value produced by their own labor, and their tax money goes to building public infrastructure and social support, then we won’t need to gamble for our retirements because it will already be guaranteed by the social safety nets that we funded instead of giving all that money to the rich in exchange for a flimsy promise that it might be paid back to us some day when we’re too old to work and depend on it absolutely for our continued existence…
I thought it seemed plain as day but I tried talking about it years ago and people called me a lunatic, a psychopath, a conspiracy theorist.
Like I told them “if it doesn’t burst now it’s only going to keep climbing and making things worse and worse until it can’t push the limits any further, and then the fall will only be greater and more painful.” And lo and behold, what has become.
That’s a lot of maybe in that plan…
More likely, we’ll just go through another wave of the cycle:
market crash --> regulations enacted to prevent the problems that caused the crash --> decent prosperity under regulations --> lobbying to remove ‘bad for business’ regulations --> unchecked greed and bubble --> market crash --> repeat forever…
Yes I use a lot of maybes when talking about the future, because the future isn’t certain and I tend to be pretty honest about my epistemic limits.
It’s kinda funny how society tends to view that as a mark against my credibility, while putting their faith in whoever manages to sound the most confident. But I never claimed society is sane.
Your scenario is another possibility. But it can’t hurt to dream of better.
Don’t worry, it’s going to get a whole lot worse.
don’t worry my PP 1000 is at a high point
So how you doing? 😏
giggity
It’s pretty wild watching AI destroy it’s own mother.
Same energy
That was always the plan.
1: Steal all the data.
2: Destroy the data sources.
3: Rent access to the data that only you now posses.
We’re going back to Hunter gatherer and oral traditions.
Shaka, when the Reddit fell.
Sounds good to me.
Honestly? Probably for the better.
It’s funny you say that. I work in the tech sector and I am learning how to hunt this year. Found a mentor for whitetail hunting. I go next weekend.
Good luck! I went as a teenager and while getting a buck is an absolute rush, I really don’t enjoy venison, although I may have to overcome that in the coming shitstorm…
Thank you. I’m a fan of venison. I definitely understand why a lot of people don’t care for it though. I’m very excited about my trip.
I quit IT and am going into carrying things and putting them down elsewhere.
Wikipedia being non biased aggregate of facts will be made illegal, all the rich bastard will aim cannons at it
its just capitalism at work full throttle with GOP at the steering wheel
If you don’t shut your mouth mother
I’m gonna get your head off
And feed your girls to the dog“Homicidal Maniac” – by Armageddon Dildos.
The oral traditions:
this shit ain’t nothing to me, man
the bugs are back.
Vibe indeed.
Reddit has such a good thing going for it when they posted the little gold vs server costs progress bar daily.
It had a great incentive loop “you like the site, site is underfunded, want to donate a bit”?
Ellen Pao has the beginning of the end for reedit. Ok when Aaron died was the tipping point, but Ellen was brought in to do the dirt work to keep spez looking good… And it didn’t work, spez sucks
To expand a bit: Aaron was a tireless activist who was harassed to death by the DoJ for doing a tiny fraction of what the broligarchs get away with every day. Carmen M. Ortiz, who pushed the relentless attack against Aaron, is an unrepentant monster.
They were losing money the whole time doing that. The plan was always to go public and start profiting then.
I don’t really buy that.
Firstly, mastodon and Lemmy run for free. I know servers accept donations, but it’s viable at a relatively small price.
They started aggressively hiring around 2016 or so, they took on VC, and they needed to unload, and that’s when they started going to shit.
Even a relatively small loss is still a loss.
I wouldn’t compare lemmy. My god the shitloads of problems I have browsing here! It’s literally most buggy site I know of. Maybe it works fine on a phone, but if it can’t work well in a simple browser, it’s broken.
When have you every heard someone Reddit wasn’t the buggiest site they know of?
Agree Lemmy mobile site is bad, they random with some bad ideas.
Reddit’s smooth as glass compared to lemmy. I have to browse by hiding each post then refreshing the front page (and I can’t tell if I hide the post or not so I’m double checking all the time). “Next” doesn’t work, “next” doesn’t work on replies made to me, old.lemmy is completely broken, much more. Maybe it’s different for different servers, but if .world, one of the largest, is such a clusterfuck, I can’t imagine what smaller servers are like.
I’m an old IT tech, got the patience of Buddha for tech bullshit, but most people wouldn’t hang here two minutes. And if they do, they’ll see all the animal and lolita porn every 4th post (“furry” and “anime”). I would never tell someone I’m on here.
Tbh i have 0 problems and i also never see porn (I did not block any instance or community)
Also, bigger does not mean better
Ah yes, just operate at a loss until you somehow turn a profit. Brilliant!
Yes, that’s how it works for every start up, even a lemonade stand. YouTube bled money for what? A decade? The payback was taking over the internet video space. Now they profit.
It is a sound strategy for companies that need to reach a certain size to be viable, pretty much every mass-consumer tech company does it/did it.
There’s one tiny detail that you need a viable plan to actually turn a profit.
And reddit did turn a profit, for the first time ever, shortly after going public.
And how long did that last?
They are still highly profitable, although yeah I agree their long term prospects are dimming.
It is a sound strategy in the current market climate, for sure. It shouldn’t be, but we’ve allowed markets to consolidate to the point where they often have few enough players to count on your fingers, so it is.
Hi, I am not very smart at the economy. Is it considered good when a company loses over 60% of its value in one year?
Depends. Do you like that company? Then no.
I dislike the company, so Yay, Bonus!
It is excellent evidence that the founders and VCs chose exactly the right time to unload their scheme and rip off a naive public.
a year? It’s down 37.5% in five days !
At this point in history … the economy looks and acts more like a religion or cult
It only exists based on the beliefs and faith of the people who follow it … as soon as enough people lose faith in it, it is no longer worth anything
It is a religion, and the thought leaders tend to be just as mature as expected when their theories get dismantled. https://www.youtube.com/watch?v=YJrhBwGw7Ac for more information.
Requiring login is going to limit their ad revenue.
Unfortunately, the login will just improve the personalization of ads.
I don’t know, every time google sends me to Reddit now and I see a login page I don’t bother looking. Probably won’t find anything useful inside anyway
It’ll improve the personalization of ads that are shown to bots, but all the people have left.
I am guessing they did the math and this came on top
Don’t overestimate their intelligence.
Actually, do yourself a favour and listen to their q3 earnings report. These are some extremely cringy nerds with no value outside of having their forum become viral for being somewhat usable. Its obvious they have no idea what made Reddit usable and are trying to pivot into a live-service-esque walled garden.
They keep talking about making Reddit “Awesome”, with more “interactive lived experiences” (actual quotes by spez during the earnings rep, I would have sold too.
Cringy nerds is an understatement. They all think they’re Adonis ubermen and cannot stand even a few moments where they’re not aggressively huffing their own farts. They’re fucking losers. Fucking. Losers. Every single one of them.
I’m so tired of such fucking losers dictating our lives. It needs to stop. Nothing would make me happier than their shitty website just imploding. But that won’t happen now that we exist on a bot based economy.
All the nerds are gone. It’s just wallstreet Bros now
And whatever unholy amalgam spez is
Even if it completely tanks, Spez will still make out like a bandit. But fuck him and the arms of bots he rode in on. Even now, he’ll go down in history as the person who destroyed Reddit.
i don’t care if spez makes bank. i do care about people actually having decent access to news and media. If Reddit were to ever die I assume lemmy would see a huge influx of users. That would be a very good thing.
Iemmy, mastodon, retculum/nomadnet, there are lots of options
he already made bank before ipo a few years ago, hes just milking reddit for every last drop before throwing away the corpse.
No, it would not be a good thing: it will also attract a larger majority of their shitty users as well
it would bring a lot of those shitty users sure, but without the fascist moderation of reddit, they would likely be drowned out and they might even learn a few things in the process.
I’m pretty sure a mix of the most and least shitty people on reddit have already migrated.
Doubles as user count index too
It sucks to suck, Spez, you greedy pig boy.
Lol. Lmao, even
