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nabla9
Valuation of $5 billion would buy P/S 6.3 with negative P/E for 18 year old non-innovating company that is already in the second phase of enshittification.
brodouevencode
This seems like a last ditch effort to make it relevant again.
Havoc
They might still pull it off anyway with their data play given AI hype

And by pull it off I mean original investors get out and someone else is left holding bag

nolok
It would be really surprising given that all of the data up to 2020 is already out there. They made a deal to give a firehose of data to an ai company and it was only for 60 million.
Havoc
Yep. I don’t see how this is worth billions either but that seems to be the play.
stormfather
Google might want their post 2020 data to lobotomize the next generation of Gemini
DaSHacka
"I'm sorry, as a heckin wholesome 100 roboterino, I can't generate any content that spreads dangerous misinformation about our sponsors."
ametrau
But licensing will be bigger. And big money will be pushing it as an edge / moat—one of the few they have.
shitlord
The company actually would have been profitable in 2023 if it didn't pay out >$200M in combined compensation to the CEO and COO.

Edit: cfo -> coo

nabla9
They didn't pay $200M.

They gave stock options. Actual pay is just few million.

shitlord
These figures are from the S-1 and the compensation includes both stock options + awards.
nabla9
Yes they are and stock options are almost all of the compensation.
jallasprit
The only thing that really has value at Reddit right now seems to be their giant archive of user generated posts. It is certainly going to be interesting come IPO day.
paxys
$5B is definitely a lot more realistic than the $15B valuation they were targeting in 2022, but IMO Reddit is still not a sustainable business as it stands today. So many investors have had their money tied up for over a decade will little to no growth and are going to be scrambling for an exit on IPO day. Revenues are barely growing, losses are increasing. I don't see a rosy future for this stock.
voytec
Unlikely sustainable without innovations. A payday for stakeholders and then popular-brand bagholders magnet, possibly a buy-rumor-sell-before-quarterly-report playtoy. I wouldn't expect UX increase and the question is how long the enshittification-revenue balance will be kept steady.
Accujack
They haven't innovated in years. The only real changes to reddit have been a cosmetic re-work and release of an app for mobile use.

Well, that and the API changes that drove away something like a third of the users.

ametrau
It’s run incompetently just at the moment. You have a golden opportunity right now with the enshittification problem. How many people put Reddit after the KW in search? If it’s opened up maybe it’ll get better management.
kromem
I always thought it would have been neat if the users themselves had pooled resources and bought it up.

It could have been extremely valuable, but at this point management has been clearly outed as having no idea what they are doing.