Reddit IPO, Will Reddit Become Publicly Traded? My Take on the Front Page of the Internet
My Reddit IPO theory is something that I think could be very spot on sometime in the next 10 to 20 years, in that for their massive amount of traffic, Reddit really only has a minuscule revenue stream, although still more than enough to hold an initial public offering, at somewhere around the level of $100,000,000.00 per year. Companies with the level of traffic that Reddit has are among the giants like Facebook, Twitter and Bing, and have market caps in the range of $100 billion, Wikipedia is also guilty of squandering literally a hundred billion dollars so that people could have “ad free traffic,” which I think is just crazy. In this blog post, I’ll talk about a possible Reddit IPO, and will discuss how much the company is really worth right now, were they to get a good offer for a sale. For more information on all things Money, Accounting, Finance and IPOs, be sure to subscribe to our blog for additional details and information.
Other internet Kingpins that could easily make A Billion Dollars include the following:
World Wide Web
Baidu if they moved to the United States
And a host of other large internet giants, read on or subscribe to our blog for additional details and information.
My Take on the Reddit IPO, and Why I Don’t Think They’ll Ever Become Publicly Traded
Personally, even though Reddit has a vast user base, with more than 330,000,000 users, and with 55,000,000 visitors per day, while I’m sure they make a lot of money from that one advertisement on their side bar, I don’t think they will ever IPO, and if they do it won’t be for 10 to 20 years. After what I’ve seen in the internet field so far, what I don’t understand with regards to Reddit is why they don’t build up a massive email list, with push notifications and emails, which would have more than 1,000,000,000 users right now, and spam them with ads! I found that every 3300 email subscribers equates to somewhere around $500 per month in annual revenue, and Reddit could easily get this up to $1,000 per month in annual revenue.
This means that they could make 33,000,000.00 per month in additional annual revenue from an email list, which could give them close to $800,000,000 per year in annual revenue, and probably approaching the $1 billion in annual revenue mark! There are massive organizations that get $4 billion in annual revenue, and which are worth $50 billion in market capitalization. I think Reddit should scale up their user base for one more year, advertise to increase it even more, and that they should IPO at 40x annual revenue, for a valuation of $40 billion, blowing Snapchat out of the water, and starting to challenge massive companies like Twitter and Facebook in valuation, there’s no reason that Reddit is not a $100 billion company!
Why Reddit is Losing out on $100 Billion In Order to Not Serve Their Customers Ads
When I say serve their customers ads, what I mean is that they don’t funnel all of their traffic to an email list or push notifications, and use their massive audience to turn what is right now a measly $100,000,000 per year revenue stream, into higher than $1,000,000,000.00 per year in annual revenue! I truly believe that if Reddit focused on scaling their user base solely for just one more year, while funneling their traffic to a highly targeted advertising campaign and an email list, that they could easily generate $1,000,000,000.00 per year in annual revenue, and could IPO at more than $40 Billion Dollars, comment if you agree!
Why Wikipedia is Losing out on $500 Billion in Order to Not Serve Their Customers Ads
Wikipedia is another company that I’ll be writing a blog post about in the near future, in that they could quit easily be generating more than $2 billion per year, if they served their users ads, and with their more than 73,000,000 visitors per day, at 1 billion hits per day, we’re talking about a website that could easily be generating more than 1 trillion clicks per year, and which could (Google Generates several trillion clicks per year) generate easily billions and billions of dollars per year in annual revenue. Wikipedia is I think a dormant $100 billion company right now, and I can’t believe that they still do not monetize!
Final Thoughts on the Possibility of a Reddit IPO, and Why This Will Likely Never Happen
All in all, there are a handful of companies out there that surprise me with their revenue and marketing strategy, with regards to why they don’t monetize in certain ways, and Reddit is definitely one of them. Reddit is probably valued at somewhere in the range of $1 to $2 billion right now, but they could easily hit that $40,000,000,000.00 valuation mark were they to continue to scale and focus on profits as aggressively as some other large companies do. Only time will tell if we will ever see a Reddit IPO, but personally I think not. For more information, be sure to subscribe to our blog for regular updates on all things news and finance.
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