[Fidelity Blue Chip Growth Fund] has further slashed the estimated worth of its holding in the social platform Reddit… [it] valued its holdings in Reddit at $15.4 million as of May 31… That’s down 7.36% from the $16.6 million mark at April’s closure and altogether a slide of 45.4% since its investment in August 2021. The updated share value suggests a $5.5 billion valuation for Reddit.
Very interesting. It doesn’t seem to be that big of a downturn in the total valuation, but it’s continuing several small downward trends for the platform. Close to 10% down isn’t breaking the bank, but Investors always just count engagement numbers (for ad monetization). So it’s not even factoring in the loss of content and free manpower / creators yet. Those will hurt the bottom line in the long run.
It’s close to 50% down in 1 year. That’s a huge valuation cut. Wait til they realise they lost many of the power users who were actually giving the website content. It’s all downhill from here.
Even if currency were their currency…
https://techcrunch.com/2023/06/30/fidelity-deepens-valuation-cut-for-reddit-and-discord/
Very interesting. It doesn’t seem to be that big of a downturn in the total valuation, but it’s continuing several small downward trends for the platform. Close to 10% down isn’t breaking the bank, but Investors always just count engagement numbers (for ad monetization). So it’s not even factoring in the loss of content and free manpower / creators yet. Those will hurt the bottom line in the long run.
It’s close to 50% down in 1 year. That’s a huge valuation cut. Wait til they realise they lost many of the power users who were actually giving the website content. It’s all downhill from here.
that would be enourmous