Reddit’s Valuation Has Fallen Even Further, Fidelity Says - eviltoast

Reddit is facing a crisis both in its user base and its finances. After protests and backlashed ravaged the platform in the wake of Reddit opting to charge for access to its API, the company’s valuation has been sliced.

TechCrunch reports that the Blue Chip Growth Fund at Fidelity, a major financial services provider, has reduced its estimates of Reddit’s holdings following an already poor estimate earlier this spring. Fidelity now estimates that Reddit’s holdings could be around $US15.4 million as of May 31, which is down over 7% from the fund’s estimates of $US16.6 million from this past April. This new figure is is also a reported 45.4% slide since Reddit secured Series F funding in August 2021, when an asset manager acquired the platform’s shares for $US28.2 million.

Reddit did not immediately return Gizmodo’s request for comment on the valuation.