It is basically the system that is broken.
As an intituional investtor/investment manager you have to look in the past, not future.
If you predict that something will happen in the future and are wrong, you will lose credibility/bonuses/your job. If you are right you might get a bit bigger bonus.
If you instead base your investing on the past you can always point to it as evidence. That means that you will never lose your job, though your bonus might be a bit lower.
Thus the 99% chose the second option.
In case of Reddit, they have numbers that make sense on paper, if you do not think about it: The user numbers have been climbing and the average monetization is low. So there is possible upside on that.
But then if you think about it the thing look a lot less rosy: The average user is pretty tech litterate so adblockers are very common and the site changes have been mostly negative to core users and moderators. Reddit also has much harder to get enough information on users to get properly targeted ads.
Thus I would never invest in Reddit.