On a visitor perspective, this seems undervalued. This is a 50% or more discount to the market-cap/unique visitor ratio of Twitter, Snap, and Facebook.[1] And all the stats I've seen indicate much higher user engagement and time on site for Reddit compared to the other social platforms.
The biggest issue is of course that their monetization is horrible. Like 95% lower per user than the other socials.[2] So the real question an investor should ask is whether this is fixable? Or is there something intrinsic to Reddit traffic that makes it difficult to monetize? Either way, Reddit should be throwing an insane amount of money and equity to get a Sheryl Sandberg like executive with a track record of juicing monetization.
[1]https://www.theverge.com/2020/12/1/21754984/reddit-dau-daily... [2]https://www.cnbc.com/2019/02/11/reddit-users-are-the-least-v...
If you use digg as reference the long term outlook of reddit is not that bright.
digg died fifteen years ago. clearly a lot has changed, and the mistakes that killed digg have not been made.
and i think reddit is beyond the point at which a digg-style fuckup could kill them. at worst you might see cadres of ideological users depart for something like lemmy, which is already happening to an extent, but there is a lot of space to flee internally, so most users don't feel the pressure. and diffusion to federated media is in the future for every mass audience. reddit has such a huge and active userbase it will dominate for the foreseeable future.
whats lemmy? Googling around all I found was articles about the motorhead singer and some weird dead forum from the 2000s about lemmy koopa