Is Reddit collapsing? Downhill of stocks
After reporting earnings, its stock collapsed 30% in a single day.
It's down 44% in 2 weeks.
Some users started saying that they are fed up with strict moderation rules and user toxicity + AI results directly in LLMs reduce platform traffic.
I was personally able to get 2M impressions per post when it was genuine and not related to business stuff or promotion. I still consider it a relevant forum for sharing experiences but probably wouldn't rely too much on promotion there.
How do you see the situation with Reddit?
How many of you use it as the channel for promotion of your business brand?
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I personally think the moderation rules are also very strict and seem somewhat unpredictable.
Reddit's CEO shared a letter to shareholders explaining that they're losing more than 1 million visitors per week because of Google's AI-generated summaries, which provide answers directly in search results.
I feel this is closely related to what's happening to self-development books. Why post on Reddit or read through
discussions when you have a question that AI can answer directly?
It feels like Reddit will have to reinvent its business model.
@ilyasb didn't they disable scrapping the platform from AI?
@busmark_w_nika Yes, you're right. But that's not the main issue. The real problem is that Google's AI summarizes answers directly in search results, so many people no longer click on links. As a result, Reddit loses traffic.
This could also help explain the decline in Google's stock price. Its cash cow, search
advertising, is facing significant disruption.
I'm also convinced that OpenAI's move into advertising will reshape the entire industry and market.
Reddit still seems good. But the concerns are genuine.
I too got into all those problems.. Its sometimes annoying to have that many moderations especially when there are groups that allow self-promotion; you follow all the rules, and post it and still get removed by reddit filters.
The worst was that it removed literally all the posts I had created(even though it was only few) over 5 years and removed the Karma points, so now I can't even post in groups anymore other than just comment.
Toxicity of users we cannot predict, we live in a world where there are all sorts of people. Some think they are above others, so, we cant help how they behave.
I still think people will use Reddit, especially, since thats the only place where you actually connect to people anymore.... So people who like to talk to other people, discuss daily topics and issues, will still use it other than using it as a Forum for getting answers which are already available on AI.
@smilu I mean... it is very hostile platform for promotion. Personal posts brought me thousands of impressions, but promoting something was mostly banned.
@busmark_w_nika Yes. But their filters does not check the group rules. It's a Reddit wide sweep when something happens, even if the group allows you to promote your projects.
I don't understand their business. I've tried running their ads two times but so many clicks and no conversions. I think reddit people doesn't like ads.
@malithmcrdev can confirm, but their ads read like native content so probably they clicked by mistake :D
AI chat results are changing everything. Reddit was already complicated, but I see the value there in a community/interest forum, I also agree that inconsistent moderation across all of the subs can be extremely tricky to navigate. I do understand strict moderation given all of the AI generated content flooding it, but its inconsistently applied.
@amyrc maybe that strict moderation was some sort of "proof" a legit conversation because people haven't promoted themselves so heavily.
is the ai summary thing hitting every subreddit equally, or mostly the how-to and question ones? seems like the discussion-heavy subs would hold up better
@neerajnathany i do not have this experience, that's maybe that I am from the country where we are late at adopting features :D
Personally, I think it was the users; they built up a community of golems, My Reddit, Precious Reddit. Say something wrong or post in the wrong forum, and they slammed you for it. That's no way to communicate with people.
@polynym yeah, and there can only be one opinions that is correct :D