Reddit Inc. is weighing feedback from early meetings with potential investors in its initial public offering that it should consider a valuation of at least $5 billion, according to people familiar with the matter, even as it is estimated below that figure in the volatile market for shares of private companies.
$5 billion dollar valuation - never turned a profit ???
Isn’t the venture scene’s motto “loss is the product” or something?
Modern tech giants keep taking funding rounds to grow, because what’s profit now when you can spend and get bigger, so profit later can be even more huge?
Except investors are finally waking up to the fact that growth doesn’t help much if the business isn’t profitable, now or ever.
Reddit can pound its chest about how much it thinks it’s worth, but that’s all it is.