Beyond spez (and the fact that he is a greedy little pig boy), I’m curious about the corporate dynamics that prevent a company like Reddit from being profitable. From an outside perspective, they make hundreds of millions per year via advertising, their product is a relatively simple (compared to industries that need a lot of capital to build their product), and their content is created and moderated for free by users. Could any offer some insights or educated guesses? Additionally, I’m curious how this all ties into the larger culture of Silicon Valley tech companies in the 2010s.
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Amazon are famous for this, they try and run AWS at a net loss of whatever profit Amazon Retail makes, because it’s easy to spend money quickly at the end of the year to avoid taxes on IP and contracts.
Private companies don’t have to post anything publicly, they only need to send correct numbers to the tax man.