Reddit's Soaring Value Based on Faith in Future Ad Sales Despite Fraction of NYT Revenue

Reddit gets content for free from users, so its costs are low (12% of revenue) compared to NYT's high content costs (51% of revenue)

Investors are more excited about Reddit's future ad sales potential based on continual free content

Reddit's stock price has swung wildly since IPO, so its true value is uncertain

In the past, some thought Demand Media would overtake NYT, but that was wrong - NYT thrived

Reddit brings in $800M less revenue than NYT, but is valued $1B more due to perceived growth potential