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NSFW has been a thorn in their side ever since going public, yes. Mostly because investors are morons.

Reddit has not yet gone public tho?

They have been saying for years that they will do an IPO but, as is typical of the place, so far apart from statements nothing has ever been seen

Do investors specifically take issue with nsfw content? I don't understand the relationship

Visa and Mastercard take issue with it.

Apple takes issue with it.