Reddit's recent growth has been driven by new users and those who don't have accounts, with daily active users increasing by 47% compared to a year ago. However, this could be risky as Wall Street and advertisers are more focused on logged-in users. Despite this, Reddit's potential for growth is compared to that of Amazon by Marcel Hollerbach, the cofounder and chief innovation officer of Productsup. As other platforms face issues, Reddit has become a more trusted source for information and reviews. However, the platform's growth and mainstream appeal have led to an increase in ads and sponsored content, which has been met with mixed reactions from users.
Key takeaways:
- Reddit has undergone significant changes in recent years, including banning controversial subreddits and improving the user interface, to make the platform more user-friendly and mainstream.
- Reddit's growth has been reflected in its business, with the company going public earlier this year at a $6.4 billion valuation and turning a profit for the first time in its history.
- Despite its growth, Reddit still faces challenges, including the risk of the Google algorithm shifting against it and the potential for the platform to be overrun by AI bots and brands.
- Reddit's potential for growth is compared to that of Amazon, with the platform increasingly being used for product searches and user feedback.