9 ms·
A stock price takes into account future growth. When growth begins to stagnate, then the ticker will fall. People lose money. In most cases it probably isn't a
by fuqted 10y ago
A stock price takes into account future growth. When growth begins to stagnate, then the ticker will fall. People lose money.
In most cases it probably isn't a huge deal, but the fact that Twitter isn't profitable is likely a (large) factor. Without a given amount of users, it won't be profitable and decreased growth obviously means that profitability is further out. Hence them cutting costs.
There's obviously nothing wrong with a bootstrapped / lifestyle business. The people at Basecamp are big proponents of it.
https://www.youtube.com/watch?v=lBfVxBj61z0 https://www.youtube.com/watch?v=lBfVxBj61z0
Here's one interview out of plenty where they talk about this kind of thing.