this post was submitted on 31 Mar 2025
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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

(page 4) 17 comments
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[–] antisocialite@lemmy.today 88 points 1 month ago (22 children)

The censorship going on there is crazy. I understand a site needs to tamp down on violent rhetoric but they crossed the line into absurdity. They banned me for calling out the racism in the GOP platform.

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[–] Poayjay@lemmy.world 18 points 1 month ago (2 children)

Talk about failing to pivot. Reddit was in such a good position to ride the AI bubble. Too bad all of their content had already been scraped. They then alienated their power users and casual users got a peak behind the curtain. New, interesting things don’t start on Reddit anymore. The entire front page is just trump articles and reposts. You can predict all of the top comments because it is the same shit over and over.

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[–] MithranArkanere@lemmy.world 29 points 1 month ago

Everyone with half a brain knows that enshitification and pandering to CEObro echo chambers result in the platform losing large amounts of users or even dying.

[–] Sibshops@lemm.ee 19 points 1 month ago (1 children)

Reddit has it's problems, sure, but I just feel like the fediverse is a fresh of breath air.

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[–] TomMasz@lemmy.world 84 points 1 month ago (2 children)

Spez fundamentally misunderstands what Reddit is and who it belongs to: the people making the posts and providing the content. The more he alienates the users, the less value Reddit will have. He's shot himself in the foot and he's getting ready to fire again.

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[–] formulaBonk@lemm.ee 29 points 1 month ago

Well the ipo brought enshitification at max speed so that’s not surprising. They ostracize and remove users who contributed to communities for a decade+ and then replace the long standing communities with a generic, Reddit controlled alternative that only reposts all time top posts to gain traction. The only thing Reddit has going for it is the user content which is rapidly getting buried under AI slop. Worst of all (for the investor class) you can’t really see Reddit being turned into another right wing cesspool to bait young men into violence with … so there really seems to be less and less reason for Reddit to exist. Let’s hope by 2030 it’s like one of those websites people say “remember when we had Reddit …”

[–] aramis87@fedia.io 63 points 1 month ago (1 children)

It's not just the AI bubble, it's a distinct lack of faith in Huffman and as a CEO. He's not forward-thinking enough, he hasn't understood where the company's value lies, and he's ridiculously distracted by the latest shiny tech things (reddit NFT avatars, reddit crypto, reddit AI).

I fully expect Google to buy reddit at some point, exclusively harvesting all the info for their search engine, all the content for their AI models, and all the submission/view/voting data for their user profiles (what are you interested in, what do you think of these concepts, where are you connecting from, here are more ads we can send you, and these are arguments that might sway you in purchasing or other decisions).

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[–] MuskyMelon@lemmy.world 177 points 1 month ago (4 children)

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

Reddit getting Digged and me likey.

[–] RestrictedAccount@lemmy.world 39 points 1 month ago (1 children)

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)

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[–] foggy@lemmy.world 208 points 1 month ago (7 children)
[–] independantiste@sh.itjust.works 8 points 1 month ago (1 children)

"Run, motherfucker, run"

-snoop dogg

[–] antisocialite@lemmy.today 11 points 1 month ago

Burn baby burn, disco inferno

[–] RedPostItNote@lemmy.world 83 points 1 month ago (11 children)

Reddit is not coming back. I know when a site is dead

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[–] Madrigal@lemmy.world 126 points 1 month ago (3 children)

Aww, did Spez trade the family cow for some "magic" beans?

Good luck rebuilding the farm now, buddy.

[–] Talaraine@fedia.io 33 points 1 month ago

My parting message to Spez when I changed all my posts was, "Enjoy the IPO asshat!" While I wish I could update that message, it'll still do. xD

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