this post was submitted on 26 Dec 2023
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[–] chiliedogg@lemmy.world 33 points 11 months ago (9 children)

The difference with Facebook is that it is a public company, so it does have to grow every year to have value for investors.

Reddit doesn't. It's existing private investors can splot the profit and be just fine. They just want a huge payout that will only come from an IPO.

[–] wicked@programming.dev 8 points 11 months ago (3 children)

Are you not aware that public companies split the profits too? They do not need to grow to have value for investors.

[–] Chessmasterrex@lemmy.world 9 points 11 months ago (1 children)

Not all of them do that. There are growth stocks and dividend stocks. Growth stocks typically don't pay dividends, but instead reinvest the dividend back into the company. Amazon, Alphabet and Berkshire Hathaway don't pay dividends.

[–] wicked@programming.dev 1 points 10 months ago

Of course not. But they can, whenever they choose to. Parent comment said they have to grow since they are public, unlike private companies like Reddit.

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