Doesn’t have to be reality. Even when a firm is profitable and has scale it can still act as a funnel for new business. It also helps to keep some competitors

Doesn’t have to be reality. Even when a firm is profitable and has scale it can still act as a funnel for new business. It also helps to keep some competitors out. One less toehold for newcomers to get traction in a market. Just look at the comments on the recent Heroku announcement - how many will now consider an alternative option. More likely management have lost interest in growth and are looking to squeeze as much out of the existing customer base as possible. Not usually a good sign for investors or users.