• The_v@lemmy.world
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    10 months ago

    I am laughing the valuation of Reddit right now on Reuters. 10 billion.

    https://www.reuters.com/technology/reddit-raise-700-million-over-10-billion-valuation-2021-08-12/

    How the fuck to they dream up there numbers.

    Last quarter they made 100 million from advertising revenue. Thats a maximum gross income of 400 million a year. Last year the same time they made around 30 million.

    If they maintain the 100 million income revenue, that’s only 400 million per year. It will take 25 years to generate 10 billion gross income.

    • lovesickoyster@lemmy.world
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      10 months ago

      the thing is people don’t really care about numbers anymore - it’s all just based on hype. Here are some fcf yields:

      • nvidia - 1.4%
      • tesla - 0.7%
      • amazon - 2%
      • meta - 4.2%
      • amd - 0.4%
      • and so on…

      these are all in the same ballpark. The market right now behaves like a 13 year old crypto lover that doesn’t have the mental capacity to do basic math. I can totally see reddit skyrocketing after the IPO. No chance I’m be buying in, though.