The fact is that many, many internet businesses today not make sense. Many of them are bleeding money with no possible path to profitability ahead. Mostly due to the fact that people's expectations are very different and I would argue even skewed. Clearly hosting Reddit is expensive, but who really pays for it? People don't like ads, don't like to pay for services, don't like to be reminded that they can provide donations (Wikipedia). What else is there? Hoping the customers have the suddenly conscience to fund the product?
I foresee many internet companies dying over the next few years with no real replacement to crop up. But people always forget and history repeats itself; so maybe we will just see an endless reincarnations of similarly failed products.