4 ms·

At the current rate of year-over-year decline in operating income, they'll be losing money in two short years. Then they'll be as dead as eternal money-losing

• colinmhayes 4y ago
  Revenue only down 1%. Their operating income went down because they hired 20,000 people. They can fire them whenever they want and be right back where they were profit wise. Their content is still free to them unlike Netflix after all.
• PheonixPharts 4y ago
  > I'm as confused as you are. Don't be, for the last decade or so money has been extremely cheap. For anyone focused on fundamentals many of these companies don't make sense and it all seems eerily similar to the dotcom logic (anyone old enough will remember claims of "new economy" and "things are different"), but for anyone interested in growing their money, spending more than you make while money is essentially free makes a lot of sense. The thing many people still don't understand is that the era of cheap/free money is coming to an end and there is going to be a lot of reality coming to surprise companies that aren't actually able to become profitable in an era without free money. This doesn't just impact companies that currently don't make a profit, but those that make their profits from other companies that don't make a profit. How much AWS is paid for by startups that don't make a profit? How much of meta's ad revenue is ad-spend from companies that don't make a profit? We'll soon be finding out.