Reddit delivered strong earnings, but the numbers beneath the surface tell a different story. Slowing logged-in user growth and AI-powered search could threaten the platform's long-term value.
Step 1: Sell data to AI companies
Step 2: ???
Step 3: Profit
They are now finding out step 2 is getting absolutely destroyed by AI not sending people along to their platform. And the profit in step 3 is for the AI companies, not for them.
These CEOs are so shortsighted it’s beyond belief. Sure Google paid hundreds of millions for the data, but in turn it’s a death sentence for the platform. But hey it was money in the short term right?
Step 1: Sell data to AI companies Step 2: ??? Step 3: Profit
They are now finding out step 2 is getting absolutely destroyed by AI not sending people along to their platform. And the profit in step 3 is for the AI companies, not for them.
These CEOs are so shortsighted it’s beyond belief. Sure Google paid hundreds of millions for the data, but in turn it’s a death sentence for the platform. But hey it was money in the short term right?