RDDT The threats are real, but what does a good future look like?

REDDIT.COMNov 3, 3:24 PM UTC

Key insights

  • RDDT faces significant threats from AI, particularly Google's AI mode, which is cannibalizing its traffic by summarizing content without referrals. This has led to declining daily active users and accelerated decline warnings. RDDT is suing ANT for data scraping, highlighting a broader industry issue of AI extracting value from others' work. While RDDT is attempting to mitigate these issues by forcing logins and exploring international markets, the article suggests a challenging future, though logged-in user growth and quality content offer some silver linings.
RDDT The threats are real, but what does a good future look like?

RDDT has collapsed since earnings and for good reason. The threat? AI. Daily active users are falling, mainly non-logged into traffic. They warned of accelerating declines in the future. GOOGL is cannibalizing the site with AI mode. They're summarizing and scraping the content but without sending referral traffic. RDDT could threaten to block all scraping and training but that would be suicide as they would have to agree to be eliminated from all search too. GOOGL's monopoly seems to give it enormous leverage over the site. It's not just GOOGL either. RDDT is currently suing ANT for scraping and stealing data. AI in general is going to steal everyone's data, trade secrets, proprietary research, client data and currently there doesn't seem to be a way to stop it. Honestly broadly speaking, the threat of extracting all the value and profit from the work of others seems to apply to almost everyone, not just RDDT. RDDT is trying to force logins now and experimenting with markets outside the US as a test. That's probably the right move given current conditions but could be very painful too for short term and general visibility. For a long term position in shares, what do you see as a potential positive future? I'm not too worried about the whole "too woke" narrative. Yes it is obviously left leaning as a platform but something like that is fixable if it ever impedes growth. One silver lining is logged in users is still growing just overall traffic is hurt from GOOGL. People still like the product and what is basically the best organic content on the web. Will it take regulation? What needs to happen?

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