Technology

38624 readers

103 users here now

A nice place to discuss rumors, happenings, innovations, and challenges in the technology sphere. We also welcome discussions on the intersections of technology and society. If it’s technological news or discussion of technology, it probably belongs here.

Remember the overriding ethos on Beehaw: Be(e) Nice. Each user you encounter here is a person, and should be treated with kindness (even if they’re wrong, or use a Linux distro you don’t like). Personal attacks will not be tolerated.

Subcommunities on Beehaw:

This community's icon was made by Aaron Schneider, under the CC-BY-NC-SA 4.0 license.

founded 3 years ago

MODERATORS

alyaza@beehaw.org

TheRtRevKaiser@beehaw.org

gyrfalcon@beehaw.org

rs5th@beehaw.org

coldredlight@beehaw.org

SemioticStandard@beehaw.org

TheRtRevKaiser@kbin.social

remington@beehaw.org

Reddit Rated Sell as Redburn Flags Risk From Google Algorithm (www.bloomberg.com)

submitted 1 month ago* (last edited 1 month ago) by misk@sopuli.xyz to c/technology@beehaw.org

7 comments fedilink hide all child comments

Archive: https://archive.is/2025.03.17-204842/https://www.bloomberg.com/news/articles/2025-03-17/reddit-rated-sell-as-redburn-flags-risk-from-google-algorithm

The user growth experienced by Reddit Inc. is a “gift” from Alphabet Inc.’s Google that may have led to excessive bullishness on the social-media company, according to analysts who have become the stock’s biggest bear.

Redburn Atlantic’s James Cordwell and Joseph Barker initiated coverage of Reddit with a sell recommendation, saying that while the financial performance since its initial public offering has been “stellar,” Wall Street is not appreciating the vulnerability of its growth to Google Search. Additionally, the analysts see user growth stalling in 2025.

“The reality, in our view, is that Reddit’s potential, breadth of appeal and thus value as a company are being overstated,” Cordwell and Barker wrote in a note published on Monday.

Shares fell 2% on Monday and is down 23% this year. It now has 15 buy-equivalent recommendations, seven holds and three sells among analysts tracking the stock, according to data compiled by Bloomberg. Cordwell and Barker’s price target of $75 is the lowest.

you are viewing a single comment's thread
view the rest of the comments

[–] lvxferre@mander.xyz 19 points 1 month ago (3 children)

Cordwell and Barker expect user growth for Reddit to stall in 2025 and, as a result, see revenue growth becoming more reliant on making the platform’s proposition more attractive for advertisers.

This won't be even remotely fun for the people still using that platform. Because "making the platform's proposition more attractive to advertisers" boils down to either more ads or ads that are more obnoxious, more disguised as content, more targetted.

[–] scrubbles@poptalk.scrubbles.tech 14 points 1 month ago (1 children)

I'm all for it if it convinces more people to leave. Unfortunately I see way too many people who see ads though and think "yup that's just the way it is thank you more please"

[–] Powderhorn@beehaw.org 9 points 1 month ago

Anybody being willing to view ads confuses me.

[–] KingThrillgore@lemmy.ml 4 points 1 month ago* (last edited 1 month ago) (1 children)

It strikes too much like Federated Media/Demand Media/Whoever decided the only way to get metrics was to turn towards advertisements in content. Or to be more specific, advertisements are the content.

Which is also how Digg v4 ended up, the brands as content submitters.

[–] lvxferre@mander.xyz 2 points 1 month ago

Which is also how Digg v4 ended up, the brands as content submitters.

Exactly. Almost like Reddit decision makers know how Digg died, and yet they're unable to not follow its steps.

[–] KingThrillgore@lemmy.ml 2 points 1 month ago

Oh no, who's gonna buy ads on reddit when the rich white conservative bankrolling "He Gets Us" dies?