The dumb thing about these tech company evaluations is they’re always based on a degree of future growth that could never possibly happen.
Even after this big plummet it’s still got a price:earnings ratio of 145 (by comparison, most others industries have PE ratios around 15-30), which suggests there’s a lot of people who think that Reddit is going to find some magic way of growing by a factor of 10, despite its current brief spurt of profitability only being the result of them burning a ton of goodwill.
The dumb thing about these tech company evaluations is they’re always based on a degree of future growth that could never possibly happen.
Even after this big plummet it’s still got a price:earnings ratio of 145 (by comparison, most others industries have PE ratios around 15-30), which suggests there’s a lot of people who think that Reddit is going to find some magic way of growing by a factor of 10, despite its current brief spurt of profitability only being the result of them burning a ton of goodwill.