[yazaddaruvala]

> Is it because reddit isn't profitable so relies on constant money supply from investors? Or is it something else

Roughly.. but more accurately even if they are profitable they are not profitable enough.

Its not just that Reddit (Twitter, Twitch[0], etc) needs the money, the investors likely also have loans that need to be repaid sooner-than-later (or just other places with better returns). As such there is a large push for higher short term profit, to get higher short term share price, to "diversify" some of their Reddit stock.

The reality is none of these people care about the long term of Reddit. They have effectively "pumped it", they now need a good way to quickly "dump it". I'm sure none of them have any explicit motivation to destroy Reddit's future cash flows in the process, but that long term health is definitely not their focus.

[0] Twitch as an Amazon subsidiary doesn't exactly fit this model. However, the execs within Amazon do have Profit targets to meet for their orgs. This directly reflects in their bonuses, size of orgs, etc. So likely a similar enough analog.