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

  • MuskyMelon@lemmy.world
    link
    fedilink
    arrow-up
    109
    ·
    2 days ago

    Lets take a platform driven by community participation and ostracize community users. Yeah that’ll work out well.

    Reddit getting Digged and me likey.

    • arrow74@lemm.ee
      link
      fedilink
      English
      arrow-up
      16
      ·
      edit-2
      2 days ago

      Yep the train from being offered early access to their IPO as a “power user” to a permanent account ban did not take long.

      So here I am

    • RestrictedAccount@lemmy.world
      link
      fedilink
      arrow-up
      22
      ·
      2 days ago

      That is a deep cut reference. They are relaunching as an AI play.

      That will bring back the people who were providing the free content.

      (/s on the last part)