[Reuters BreakingViews] Investors will say “OK Boomer” to aging Reddit
[Reuters BreakingViews] Investors will say “OK Boomer” to aging Reddit
[...] a dearth of profit this late into its existence portends the lack of a real business model, suggesting it’s still not ready for public company life.
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why does every web page need to be a fortune 500 mega-corporation?
They don't. But the dot-com frenzy where people threw money at anything tech-related is long over, and investment firms aren't going to give lots of money to a barely-profitable business with a long history of bad decisions. Oh, they'll buy some stock but it's not going to be the massive frenzy Huffman desperately wants. He's going to take whatever he gets and work on his doomsday bunker, and reddit will continue to contribute to the enshittification of both the internet, and society in general.
Yep. I understand the desire to make enough money to retire. But I don't endorse turning a public service into a predatory wasteland in a pathetic attempt to retire young.
He wants the money for his doomsday bunker.
They don't, but Reddit is one of the highest traffic sites on the internet, and the infrastructure and programming requirements are massive. That needs $$$$$, otherwise they're going to be scaling it down, fast. And maybe that will be a good thing.
Infrastructure, sure. But programming, I don't see it. Reddit doesn't have to be complicated if all you want to do is make it a good link aggregation and threaded discussion site.
But Reddit got greedy, they wanted to be everything to everyone. So they kept trying to add new features to compete with other social media sites. They wanted to be Facebook and Tiktok and Imgur as well, and so they spent huge amounts of resources fiddling with their format and adding stuff like video hosting. Surprise, people already had Facebook and Tiktok and Imgur and weren't interested in something that was second-best at doing those things. So it was a huge amount of costly work that didn't end up earning them much.
This is yet another symptom of the "endless growth" problem faced by lots of modern companies. They can't settle for simply being solidly profitable in their niche. They always need to make their share price go up by getting bigger.
This is actually what I think Huffman's biggest weakness as a CEO is. CEOs are supposed to be forward-thinking, coming in ahead of or on top of the next new wave. But Huffman sees an exciting new tech trend, waits until it gets big and then tries to cash in on it. He didn't start reddit crypto until crypto was at it's peak. He didn't do reddit NFTs until they were peaking. He didn't try to do reddit video until after TikTok was huge. He only shut the API door after he'd paid all the bandwidth and infrastructure cost to transfer all of reddit's valuable user commentary to multiple AI companies, including some of the richest corporations in the world. He absolutely fucking sucks as a CEO.
Everyone knew NFTs were a scam from the beginning, I'm surprised they even attempted it considering it was already so late in the game. It took two things commonly used for money laundering and combined them (art and crypto).
Reddit's owner(s), Advance Publications, should've sacked Huffman years ago; I often wonder why they didn't.
The programming requirements are "just copy and paste any updates from that RSS feed thing no one ever bothered to use".