“They’re shooting themselves in the foot,” Mir says. “The content of the users is what makes the platform worth visiting. These hosts kind of run into this confusion that their hosting is the reason people are going there, but it’s really for the other users on the medium.”
Fidelity dropping reddit’s valuation by ~40% made me go “oh boy that’s bad news” when I saw it at the start of the month.
Imagine thinking you’re cashing out at 10 billion and now you’re only getting 6. The horror.
Imagine you’re an employee thinking you’re going to have stock worth 100k, and suddenly it’s worth 60k and falling.
Sure, that is pretty crappy. But I liken that to employees who build their budgets and personal financing around bonuses. Nice to have, but not a guarantee and wrong thing to assume you’ll get them. Always assume equity will be zero, IPOs benefit C-levels and investors heavily.
I can’t find much on reddit’s equity offerings for employees but I imagine it’s, at best, a pittance. Their other benefits are top notch though. No wonder they “don’t turn a profit”.