Reddit, Snap Inc, Snapchat's owner and Pinterest, the up and coming social networks are undervalued. All three of them, according to Wolfteam Ltd.'s projections and estimates.
All Reddit, Snap Inc, Snapchat's owner and Pinterest have around 500 million monthly active users or 1/6 th of Facebook, owned by Meta Platforms' monthly active users. Meta's market capitalization is circa 1.23 trillion USD, while Reddit is valued at 10 billion USD in its latest private market raising round, Snap's market capitalization is 18.157 billion USD and Pinterest market capitalization is 24.52 billion USD.
So purely on monthly active users count basis, Reddit, Snap Inc, Snapchat's owner and Pinterest could be worth around 10 times more.
It is true, Facebook users' platform engagement is much higher and Meta, Facebook's owner consequently charges higher prices and Meta's net profit margin is 25 % + on regular basis, while only Pinterest exhibits consistent 3% - 7% net profit margins. Snap is generally loss making, while Reddit is consistently loss making.
Reddit's upcoming IPO may provide many answers regarding the economic fundamentals and valuation of Reddit.
Reddit is a niche social network. But the niche Reddit has carved out for itself is quite large currently.
Reddit is the most undervalued relatively popular social network currently, according to Wolfteam Ltd.'s estimates.
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