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A Summary of

Reddit: Organized Lightning

by
Mario Gabriele
The Generalist
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As the conductor of cultural currents, Reddit may have more upside than any other social media company. 

History

  • Steve Huffman and Alexis Ohanian created Reddit with the help of entrepreneur Paul Graham.
  • Growing Pains and the Acquisition 
    • Reddit grew rapidly but steadily (unlike other social media companies).
    • Generating revenue was difficult, so the company was sold to Condé Nast and it grew immensely.
  • The Comeback 
    • Huffman and Ohanian joined the company again, in leadership roles.
    • Reddit has been central to pop-culture over the past decade.

Value

  • Reddit is one of the most undervalued companies in the world at $6 billion.
  • The implied value of a Reddit user is criminally low
  • Explanations and Misconceptions
    • Undervaluation stems from outdated historical data and an anachronous view of the product. 
      • Lack of revenue per user
      • Pseudonymity of the platform

Roadmap

Video  - Since its initiation in 2017, video has become a prominent feature with the homepage.  - In 2019, Reddit introduced live streaming through a program called RPAN.  - Reddit is purchasing Dub-smash to integrate into video filtering and increase audience diversity and engagement.  Geographical Expansion  - The company is popular domestically, but struggles internationally.  - Reddit has two disadvantages in terms of internationalization. - Text-first - Since most of its content is written in English, its appeal is limited in non-English speaking countries.  - Group-Based - You follow a community, not an individual, and a community is only valuable once a certain number of users are involved.  - Reddit is looking to overcome this challenge by initially expanding in France and Germany. Crypto  - There may be a more extensive push into creating a native economy. 

Galaxy Brain

Reddit should make improvements to the core product. No Brainers  - Redesign browsing  - Improve recommendations - More search functionality  Meaningful Upgrades  - Elevating the Profile  - High-profile people have little incentive to maintain a presence on the platform.  - Lean into the creator economy movement. - Creator-first  - Reddit could drive traffic to chosen creators. - For paid communities, that would improve top-line revenue.  - Create an Economy  - Reddit should make it easy for subreddits to pay-gate their community. - Adopting an intrinsic currency would create a virtuous free cash flow cycle. Galaxy Brain Moves  - The Snooniverse  - Snoo, Reddit’s mascot, can be customized to create more engaging profiles. - Reddit could build out these spaces to become synthetic social environments. - Own the Conversational Pipeline - Reddit is letting the value it creates leak into other platforms. - Unbundle itself  - It should create dedicated teams to build for its winning communities.

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