I was thinking would reddit be a great long term investments or is this too unrealistic, because reddit literally is one of the most impactful networking platforms in the world with over 430 million active monthly users which makes it a great platform for advertiser's but from a more nuance perspective reddit sucks as a business, according to statista reddit's ARPU was $0.60 U.S dollars global in 2022 and this is a 50% increase from the year 2020 when reddits global ARPU of $0.30 U.S dollars , I personally highly doubt that Reddit will be able to compete with other key players in the networking business by comparison Pinterest global ARPU is $1.23 U.S dollars and in the US it's $5.11 U.S dollars , Reddits ARPU is about 44.4% to 70.6% lower than Pinterests and I'm just making the comparison between these two companies because they have a similar user base and they both heavily rely on advertising reddit has 430 million active monthly users and Pinterest 459 million active monthly users and yes there are many other variables to put into consideration when evaluating a companies future potential such as cultural impact, growth per year, market conditions, sales trends and multiples used by comparable businesses, but personally I love reddit more there a lot of great active communities that engage more with me here literally two of my posts got close to 1 million views and 20,000 upvotes here and that hasn't happened for me anywhere else before and the reason I want to have discussion about this is because reddit is planning on going public and some analysts say it's valuation is likely to be lower than expected but what are your thoughts on this ?
Leave a Reply