This is the point to remember from today’s morning memory, that you can register To receive in your reception box every morning with:
For an impressive section of seven quarters of the first quarter of 2022 in the third quarter of 2023, Reddit (RDDT) had more connected American users than disconnected.
Another way of saying that the majority of users of social networks were loyal reddictors rather than passing hairstyles, a level of loyalty and commitment of the community that most companies can only aspire.
And then, a switch turned around.
From the fourth quarter of 2023, the majority of Reddit visitors were disconnected users. During his last quarter, the daily active users of this cohort fell for the first time in almost two years.
During the company’s first profit call as a public company in the first quarter of 2024, Reddit owned its greatest increase in the active daily user (DAU) in three years; More than 60% of the increase came from disconnected users, either those who had not bored to connect or people who never had an account in the first place.
At the time, Reddit CEO Steve Huffman said it was because “the product is better”, while in the following breathing noting the main reason, “an increase in Google traffic” and ” largely part in disconnected users ”.
Huffman thought that the “Googlebot loves speed”, but as the company admits, a moment a few years ago when everyone seemed to start adding “Reddit” at the end of Google research, to The search for real opinions of real people in the middle of a sea chummy of increasingly useless search results written by content farms. Or worse: ai.
It was thought that this same content of content generated by the user made Reddit a game of ultimate AI.
And, perhaps in the ironic symbiosis, the same company that recognized the quality of the content and sent its own users to Reddit has become its main partner of AI.
Our Hamza Shaban wrote 11 months ago that “the pivot of the AI also undermines one of the greatest forces of Reddit”, qualifying the agreement of “Faustian good deal in which it sells for AI” .
And this week, investors wondered if the Scorpion finally bit the toad.
Reddit’s quarterly results this week did not meet the expectations of the DAU; The stock dropped by around 9% since its results left Wednesday evening.
As Hamza pointed out, Reddit knew that this day would come, recognizing in his Introduction file on the stock market that “changes in algorithms and the dynamics of internet search engines could have a negative impact on traffic for our website And, finally, our company.
