http://www.alexa.com/topsites

Reddit is ranked at number 9 on the list. It's ahead of Twitter, LinkedIn, and Twitch, to name a few.

Those three companies each make billions in revenue each year. Some lose money, but they still produce quite a bit of subjective value and have valuations that are high to match. I know Twitter might lose value over time, but it's going to be in the billions for a while.

Reddit has more site visitors, way longer time spent on website, and more pages viewed per user than most of the sites on the list. But its valuation, last I checked, was $500 million - far below its peers. I've also heard that it only makes $10 million a year in revenue.

So why is Reddit's revenue and valuation so low? It's not as if it's worthless to advertisers - there's a fair amount of preference data to be gleaned from users based on which sites they visit and so on. Is it bad management? Lack of focus? Or something else?