Feb 27·edited Feb 27Liked by Tanay Jaipuria

Reddit's such a strange company:

✅ As the best source of authentic information on the internet, it could become as valuable as META.

❌ Its ad product is decades behind in terms of user experience and ROAS

✅ The core product has resisted the enshittification that's undermined so much of the internet's UX since the mid 2010s...

❌ ...through a sort of salutary neglect where most R&D has gone to benign, meaningless features like NFT avatars and UI overhauls

✅ A useful on-site search feature would PRINT money with search ads. Currently Google is free-riding Reddit's content this way. LLMs + RAG on individual subreddits would be incredibly useful

❌ Reddit has failed to develop better search and ad products for a decade. Nobody knows why.

✅ The timing is excellent for a big cash infusion via IPO to capitalize on AI and Google's slipping search quality. AI search relies heavily on Reddit content, and the time is right to acquire or partner with other search and ad platforms.

❌ Public companies suffer from short-term pressures to maximize revenue, which makes ambitious long-term pivots harder. If Reddit couldn't execute a strategic vision as a private company, I'm worried it will sell out its user experience for short-term gains post-IPO

✅ Reddit's alienated its users before with no long-term detriment (e.g. closing its APIs). Community network effects can keep a declining product going a long time (Cf. Twitter)

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good assessment!

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