Why is something like Snapchat worth billions because of its potential revenue, but Reddit is not?
Because Snapchat has network value that Reddit does not. That means that Snapchat knows who you're friends with, who you communicate with, and who communicates with you (in addition to your cell phone number, your ipad device id, ect). This data about your social network is extremely valuable.
The Short Answer
Because Snapchat has network value that Reddit does not. That means that Snapchat knows who you're friends with, who you communicate with, and who communicates with you (in addition to your cell phone number, your ipad device id, ect). This data about your social network is extremely valuable. Additionally, Snapchat benefits from a network effect, meaning the usefulness of Snapchat goes up as more people sign up for it. Reddit on the other hand, knows almost nothing about you. Accounts are anonymous, and there are no real lasting relationships or interactions between the users. A few other factors – Snapchat is seeing explosive growth, Reddit is not. Snapchat is entirely mobile app, Reddit is web/mobile.
Analysis
Key Concepts: Snapchat, reddit, network
This explanation focuses on snapchat, reddit, network and spans 116 words across 8 sentences. At 71% above the average Animals explanation (68 words), this is one of the more thorough answers in this category, reflecting the complexity of the underlying question.
What This Answer Covers
The explanation opens with: “Because Snapchat has network value that Reddit does not.” It then elaborates by explaining the root cause, ultimately building toward a complete picture across 8 connected points.
How This Compares in Animals
Ranked #70 of 500 Animals questions by answer depth (top 15%). This places it in the comprehensive tier — the top quarter of most thoroughly answered questions. Questions at this depth typically involve multi-faceted topics requiring nuanced explanation.
Frequently Asked Questions
Is there a simple explanation for why something like snapchat worth billions because of its potential revenue, but reddit is not?
Because Snapchat has network value that Reddit does not. That means that Snapchat knows who you're friends with, who you communicate with, and who communicates with you (in addition to your cell phone number, your ipad device id, ect). This data…
How detailed is this explanation compared to similar Animals questions?
This is one of the most thorough answer at 116 words, ranked #70 of 500 Animals questions by depth. The key concepts covered are snapchat, reddit, network.
What approach does this answer take to explain something like snapchat worth billions because of its potent?
The explanation uses root cause analysis across 116 words. It is categorized under Animals and addresses the question through 1 analytical lens.