You don't understand? It's like this: valuation is based off how many users x how much each user is worth (in terms of targeted advertising).

Reddit has a lot of users but it's hard to build user profiles for targeted advertising as there's a lot of anonymity and shot posting.

Teen snapshot sites are worth more because because its real people, posting real things. That data is valuable.

I feel that reddit has enough data to effectively target ads. If I subscribe to /r/cars, chances are I like cars (if I make a post asking "What is the best car to buy for $X?" I'm probably in the market for a new car). If I post in a city subreddit, chances are I live there. If I post in /r/programming, I'm probably a programmer. There are also third-party analyzers that can take a reddit user's data and give a pretty good guess of their demographics based on their public post history as well.

I feel that if someone were to target ads to me based on the subreddits that I subscribe to, they'd be far more relevant to my interests than Facebook ads. Facebook shows me clickbait spam that my friends liked; I almost never see any interesting ads there. Reddit certainly has more advertiser friendly information than Snap does. On Snapchat, you share photos with your friends and Snap knows nothing about you other than your location. Reddit on the other hand has confirmed interests.

Because companies are valued in dollars, not social utility units.

$SNAP is down nearly 50% from its IPO. We'll see where its valuation really settles.