The future of the internet looks a lot like Reddit

For a long time, Reddit felt like it wasn't a place for everyone. Not that everyone couldn't be there — it's free to join, completely anonymous, and you can lurk without an account — but it was also a weird, sometimes dark little corner of the internet, probably closer to 4chan than Instagram. It was a bastion of free speech but one that could get ugly, something that Reddit leadership struggled to define and defend. The interface was tricky to navigate for those not in the know.

Nowadays, Reddit is a different — and more mainstream — beast. It's spent the past several years cleaning itself up. It's banned controversial subreddits and made the platform a more pleasant, user-friendly place to be. As its cofounder and CEO Steve Huffman told The New Yorker in 2018, the platform worked to get its "shit together."

Moderators of individual subreddits — users that manage communities and enforce their content rules — still run much of the show but under a tighter set of policies. The moderators are pretty good at keeping their own houses in order, and in a landscape where AI spam is making it increasingly hard to figure out what's authentic information, Reddit's community-driven content and policing shine. Real, actual, live human beings are talking to each other, which, on balance, is good.

Reddit lovers and noobs are flocking to the site, thanks in part to the Google gods.

This broadening of the platform has also been reflected in the business. Reddit went public earlier this year at a $6.4 billion valuation, and last quarter, the 20-year-old company turned a profit for the first time in its history. Reddit lovers and noobs are flocking to the site, thanks in part to the Google gods. The search platform is prioritizing Reddit's results. There's speculation that it has to do with the companies' $60 million deal to let Google use Reddit's data to train its AI, though both deny that's the case.

Normal people — or, rather, people who aren't so steeped in online culture — are also seeking Reddit out. If you've recently found yourself inputting whatever search term and then tacking "reddit" onto the end of the search, you're not alone: On the company's most recent earnings call in October, Huffman said it's the sixth-most-Googled term in the United States this year.

"Those are people literally typing the word Reddit into Google," Huffman said. "So they know they're going to end up on it. They're using, in this case, Google to navigate Reddit."

In other words, Reddit is a little bit the new Google. And while people may not be heading in droves to Reddit to search directly, the hope is — at least on Reddit's end — that they someday will.

It's not just Google. Other tech platforms' missteps have become some of Reddit's gains. As Twitter has become a worse, uglier forum for discourse, Reddit has emerged as an alternative for users and advertisers alike. People are increasingly using Reddit to find reviews instead of turning to places such as Amazon, where the review section is often flooded with fakes. It's also becoming a more trusted place for reliable information — even the White House is using it to combat misinformation.

Basically, if you want to get honest opinions about a crockpot you're considering or get a sense of what recovery from a medical treatment might be like based on real-life experiences, Reddit is becoming the place to go for more people, including people who would have shied away just a few years ago.

For those not paying close attention, Reddit's most recent earnings report was a bit of a "Wait, what?" moment. Its stock popped after the company announced that its revenue had jumped by 68% and its daily active users increased by 47% compared to a year ago. Revenue from ads was up, as was cash from other areas — namely, Reddit licensing its data to train AI.

Much of the boost in eyeballs appears to be coming from people who are relatively new to Reddit or who don't have accounts. Reddit's daily active users who are logged in to their account is up 27%, but that metric is up by 70% for people who are logged out. This is a bit of a risky proposition for Reddit — Wall Street and advertisers are more focused on that logged-in number because, as John Herrman at New York Magazine points out, the Google algorithm can always shift against you, shutting off the traffic spigot. But for the purposes of looking at what's going on with consumers, the story is pretty clear: Lots of people are landing on Reddit more often, many of whom are casual browsers.

"It has gone from kind of a fringy and kind of, 'I'm not sure about it,' to very mainstream, and it's showing up in the numbers," said Mark Lehmann, the CEO of Citizens JMP Securities, one of the banks to help take Reddit public. He added that given how quickly the platform has grown and "monetized things even faster than people thought, I think it shows you the power of the leverage of the brand and the legitimization."

To be clear, Reddit is still pretty small compared to other social-media sites. As Anita Ramaswamy at the Information notes, Snap has over 400 million daily users, and Meta has 3 billion across Facebook, Instagram, and WhatsApp, whereas Reddit has 97 million. Reddit's growing fast, though, and it's got a lot of room to grow. Marcel Hollerbach, the cofounder and chief innovation officer of Productsup, an e-commerce software company, compared Reddit's potential growth to that of Amazon.

"When you look at product searches, they tended to start primarily on Google, and nowadays Amazon actually has more product-search-related traffic than Google has," he said. "I would assume that, I mean, it's a matter of time until people figure out that probably if they're searching for a conversation around something or they want real user feedback and not just like a Wikipedia page or something, they might directly start engaging with Reddit."

Reddit's recent ascendance was not a foregone conclusion. I won't dive into the site's full history, but let's just say it's had its fair share of controversies and upheavals, including over-greenlighting some pretty gross subreddits, being a home for leaked nude celebrity photos, and allowing a fair amount of racist, sexist, offensive, and even potentially illegal content to run rampant. It's also dealt with revolts from users and moderators. Even if you're not aware of the specifics of the fuss around Reddit, for a lot of people, it just had a reputation as being off the beaten path. In many ways, that's a positive — it gave space for people to anonymously have real conversations and engage with niche communities they might not find anywhere else. But there were also, as mentioned, some downsides.

Part of what's happened with Reddit is that it's grown up. In terms of moderation, it's not perfect, but no one can even agree on what perfect is. If it wants to keep growing — and be on the public markets — there's a level of maturity that is necessary. Scott Kessler, the global sector lead of technology, media, and telecommunications at Third Bridge Group, pointed to the takeoff of r/WallStreetBets and the subsequent attention to the subreddit, especially during the GameStop short squeeze, as a recent touchpoint that helped push Reddit into the mainstream. As much as WSB was treated as fringe at the time, it became much less so, especially after the media caught on.

There's way more ads, more sponsored stuff, more influencers in general.

Two more things have caught people's attention when it comes to possible growth and performance: AI and data licensing and machine translation into other languages. Reddit isn't just reaching more people in the US, it's reaching more people everywhere. Going public, for Reddit, has entailed becoming a more welcoming place for users as well as for investors, Kessler said. If you're hosting a subreddit where illegal activity's going on, it's very different to deal with it as a private company than a public one.

"If you're public and these things come out, I mean, that could start having an impact on your market cap. And so that obviously will make a whole host of stakeholders unhappy," he said. It's not dissimilar to PayPal clamping down on gambling transactions in the early 2000s.

Not everyone is thrilled with the normie-zation of Reddit. Jessica Melton, a 33-year-old longtime Redditor in Seattle, told me that it took a while for her to get the hang of Reddit when her then "self-proclaimed nerd" boyfriend introduced her to it in high school. But then, she felt like it helped her become her own person. It's where she found tips for approaching her first gynecological appointment, how she discovered she had a relatively common skin-picking disorder, why she decided to go to therapy, and how she navigated being the first among her friends to become a mom. She likes that there's more moderation now because there were some "really disgusting subreddits," but she also misses some of the specificity and smallness of the old days.

"There's way more ads, more sponsored stuff, more influencers in general, too," she said. "I have noticed more brands posting and pretending not to be a brand, and it's really obvious for people who have been on Reddit for a while. And it's annoying."

To some extent, it's impossible to keep it too weird while becoming mainstream, and there's some specialness that's inevitably lost with growth. What's been gained isn't all good, either. Many of the factors that have driven people away from other platforms, whether it be Amazon or Instagram or Google, are things to which Reddit isn't immune. AI bots can talk on Reddit. Brands can overrun it. Just as search engine optimization operations have gotten good at gaming Google, they can likely do it on Reddit, too.

Perhaps right now, Reddit's in almost a sweet spot: not so big that it's completely ruined by corporatization, not so niche and unwieldy that it's a hellscape. It's part social media, part search engine, part just a place for real answers, or as close to real as you're going to get on the internet today.

Emily Stewart is a senior correspondent at Business Insider, writing about business and the economy.

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