• Haus@kbin.social
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    1 year ago

    Even if currency were their currency…

    https://techcrunch.com/2023/06/30/fidelity-deepens-valuation-cut-for-reddit-and-discord/

    [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.

    • spiderkle@lemmy.caOP
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      1 year ago

      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.

      • Claidheamh@slrpnk.net
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        1 year ago

        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.