this post was submitted on 28 Feb 2024
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Wait. Why is Reddit losing so much money? (www.businessinsider.com)
submitted 9 months ago* (last edited 9 months ago) by spider@lemmy.nz to c/reddit@lemmy.ml
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Reddit kind of anticipates this critique in its investor docs, and argues that it didn't really start operating as a serious business until 2018 when it finally started "meaningful monetization efforts" — that is, trying to make money for real.

But that's still six years ago. What has Reddit been doing since then?

One big, obvious answer: It has been hiring a lot of engineers and spending a lot of money on their salaries...

...What am I missing? I asked Reddit comms for comment but they declined, citing the company's quiet period before the IPO.

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[–] agressivelyPassive@feddit.de 26 points 9 months ago (38 children)

They're spending over 400mio a year on RnD. I was downvoted for stating this somewhere else, but tech workers are drastically overpaid and tech companies are structurally incapable of allocating resources properly.

I'm 100% sure, that reddit has a bunch of technologies, frameworks, components, that were developed inhouse for no other reason than a bunch of engineers trying to reinvent the wheel for the 100th time.

[–] charonn0@startrek.website 10 points 9 months ago (1 children)

That's enough money to fund a rogue nuclear weapons program. So, I hereby start the rumor that reddit is developing weapons of mass destruction.

[–] dhork@lemmy.world 1 points 9 months ago

It's always been a weapon of mass distraction, though, and Redditors are poor spellers.

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