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I wonder how that compares to what they tell new hires who are likely taking a haircut for equity in the company
by fuzz4lyfe 7y ago
I wonder how that compares to what they tell new hires who are likely taking a haircut for equity in the company
- heavenlyblue 7y ago"We have free lunch, a ping-pong table and a VR room with monthly fitness days"
- deleted 7y ago[deleted]
- xiphias2 7y agoActually they don't have free lunch, which is quite strange for Silicon Valley companies
- agotterer 7y agoThey are an NYC (does anyone still call it Silicon Alley?) company.
- saalweachter 7y agoMostly we're trying to get SF to rebrand as New New York.
- goatinaboat 7y agoThey (We) does have mandatory enforced veganism, however. https://www.bloomberg.com/news/articles/2018-07-13/wework-tells-employees-meat-is-permanently-off-the-company-menu https://www.bloomberg.com/news/articles/2018-07-13/wework-te...
- pharrington 7y agoThe Bloomberg article preview describes enforced vegetarianism, not veganism.
- quux 7y agoActually it's pescatarianism, for whatever reason seafood doesn't count as meat.
- keketi 7y agoMaybe it's because fish don't scream when you stab them, but idk.
- wickedsight 7y agoYeah, that's just horrible. We're emptying the oceans at an alarming rate. If they want to do it right, they shouldn't allow fish either.
- acchow 7y agoFish can't scream.
- deleted 7y ago[deleted]
- not2b 7y agoOld Silicon Valley (companies primarily engaged in the design and production of silicon) doesn't do free lunch.
- microtherion 7y agoNeither does Apple.
- ummonk 7y agoWe all know there is no such thing as a free lunch. (In seriousness, it is neither a Silicon Valley company nor a tech company. All it has in common is that it is using VC funding and SV-style brand marketing to grow to spectacular proportions relative to its underlying revenues)
- batmenace 7y agoProfitability and the value of the equity aren't necessarily related, though. Amazon was unprofitable for many years, but its stock still increased in value.
- phyalow 7y agoThats because Amazon was only unprofitable due to Capex and R&D. Their operating margin is fantastic, it was this promise that enticed investors! WeWork on the other hand is very ugly.
- hackerbabz 7y agoThis is what seems to not be understood by a lot of investors and people commenting on investments. Amazon could have turned a profit years earlier if they wanted to. Instead it made more sense to continue spending all of their money on expansion and R&D. It's the same with Tesla. They are selling a shit ton of cars at good markup. If they wanted a profit, they could have one. They just don't want one right now.
- notfromhere 7y agoYeah, no. There's a fundamental difference between Tesla and Amazon in terms of their profit potential. Super misleading to say that Tesla 'just doesn't want to profit rn'
- roenxi 7y agoNot understanding is one option; not trusting is another. It is presumably quite easy to shuffle operating expenses into the earnings report as capital expenses if a company really wants to, and the 'development' in R&D can hide a bunch of things. I'm happy to be wrong, but 'Oh, they can make money the minute they choose to, but at the moment they are choosing not to' is a concerning argument. Apple might have gone from "give the money back to shareholders" -> most profitable company in the world -> broke by the time Amazon turns a serious profit for its shareholders. It is yet to be disproven beyond all doubt that Amazon is competitive by virtue of having abysmal profit margins.
- michaelt 7y agoThey probably tell the new hires the same thing they tell themselves: * It's always a gamble, but if you'd received $x0,000 of options 3 years ago, they'd be worth $x00,000 now. * You'll own 0.00x% of the company, and if you owned that much of Facebook you'd be a multimillionaire. * Companies like Amazon don't make a profit, and the stock market is fine with it. They know Bezos could turn a profit if he wanted to, but he's putting all the money to work growing the business. * A company's IPO price isn't its all-time peak price; Google's stock increased 9x from their IPO price. You'll note that, if you look carefully, nowhere in those points did I promise WeWork options would ever be worth anything.
- skinnymuch 7y agoDoesn’t deter from your point at all. But Google’s stock has increased over 27x since IPO 15 years ago.