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From startups to stalwarts - this is the norm. Wall Street / Investors first. Infinite and ridiculous QoQ / YoY growth expectations and a lot of really dumb app
by windexh8er 6y ago
From startups to stalwarts - this is the norm. Wall Street / Investors first. Infinite and ridiculous QoQ / YoY growth expectations and a lot of really dumb approaches to achieve this. And executive pay that's way out of line. I just read "The Infinite Game" [0] and while a lot of the book rehashes many oft heard stories amidst well known companies and people as examples it makes the clear point that given our hyper focus on short term profits we pay the price in the long run. I don't disagree and I've been in roughly eight different tech companies over the last 12 years. From startups to companies that do more than a billion annually. They're all doing the same thing. The executives can't even hear themselves admit it, which is the really interesting part.
Case in point I was on a call where an executive stated: "We're moving to a subscription model in our product because, to go public, that's what Wall Street is going to want to see". Not because that's where customer demand is, or because it makes sense for the business. But this short sighted rationale to meet a short term goal inorganically. Wall Street and VCs are very much no different than the influencer marketing crowd. They just happen to pretend and purport they're good at growing business, when the real MO is lining pockets.
[0] https://www.goodreads.com/book/show/38390751-the-infinite-game https://www.goodreads.com/book/show/38390751-the-infinite-ga...
- TheOtherHobbes 6y agoWall St is the de facto government of the US, and in many ways the only employer of note.
- pm90 6y agoWhat can you do? Wall St has become incredibly efficient in “nudging” execs into doing what Wall St wants: by influencing the stock price, on which executive compensation is based. Only founders or execs who have more than just a financial interest in the company would buckle the trend. I have thought about this a bit. Why doesn’t the Bay Area have it’s own stock market/index? It seems incredibly stupid to let financial control over all the innovation that’s happening in the Bay be in the hands of NYCs financial markets. To some extent VCs offer that alternative financial market that doesn’t exist but it’s only for startup funding and such.
- josephjrobison 6y agoHopefully Carta will be able to shake things up and help solve this? https://www.ft.com/content/d52b0487-b13c-4bae-bf27-770518ff083d https://www.ft.com/content/d52b0487-b13c-4bae-bf27-770518ff0... There is also LTSE by Eric Reis - https://www.vox.com/recode/2019/5/22/18629621/long-term-stock-exchange-explainer-capitalism-quarterly-earnings https://www.vox.com/recode/2019/5/22/18629621/long-term-stoc... Curious how this will play out.