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.
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...