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> But, Stripe can't admit they made a major strategic blunder They quite literally say that? “In our view, we made two very consequential mistakes, and we wan
by austenallred 4y ago
> But, Stripe can't admit they made a major strategic blunder
They quite literally say that?
“In our view, we made two very consequential mistakes, and we want to highlight them here since they’re important:
We were much too optimistic about the internet economy’s near-term growth in 2022 and 2023 and underestimated both the likelihood and impact of a broader slowdown.
We grew operating costs too quickly. Buoyed by the success we’re seeing in some of our new product areas, we allowed coordination costs to grow and operational inefficiencies to seep in.”
- deleted 4y ago[deleted]
- xadhominemx 4y agoThere has not really been a broader slowdown in credit card processing volumes. Visa and MasterCard had good earnings and guidance last week. What’s really happened is exactly what BaseballPhysics said - the pace of Stripes share gain has slowed dramatically post-COVID.
- higlen22 4y agoHow do you know more than Stripe's entire leadership team? Someone should hire you.
- giantrobot 4y agoWhat senior management says publicly, what they say internally, and what the actual truth is are not necessarily the same thing. The GP I think is suggesting what they're saying publicly is not necessarily the truth.
- ergocoder 4y agoSo, you are saying there is no economic slowdown? Have you looked outside?
- xadhominemx 4y agoThere is not a slowdown in nominal consumer expenditure, which is what matters for Stripe.
- ergocoder 4y agoThat is not true. Multiple Stripe customers have layoff due to slow down revenue growth themselves. For example, Lyft is laying off people today. Are we in a different universe or what?
- xadhominemx 4y agoYes, Stripe customers have seen slowing growth post-COVID which is why Stripe’s pace of share gain has slowed. Macro, ie nominal consumer expenditures, has remained strong.
- ergocoder 4y agoStripe is a growth company. When it doesn't grow, it has to scale back. > nominal consumer expenditures, has remained strong. Compared to when? Not last year for sure.
- xadhominemx 4y agoDo you know what “nominal consumer expenditures” means? https://fred.stlouisfed.org/series/PCE https://fred.stlouisfed.org/series/PCE
- ergocoder 4y agoI think we talk about two different things. You threw out random metrics and claimed it is still growing therefore Stripe's revenue should not slow down. I claimed that two of the largest Stripe customers have their revenue slowing down, and this slows down stripe revenue. These 2 are just examples. Uber, Doordash, and many more companies who are Stripe customers also have their revenue slowing down. Do you think you metrics is more relevant than stripe customers' revenue? Stripe earns when their customers earn. My metrics is the most direct one. Also, online purchase is only 15-20% of all purchases by volume. And we haven't accounted for Paypal, Square, and etc. Your metrics is crap...
- ergocoder 4y agoIn what world this person lives in? What do you there is no slowdown? It slows down everywhere. A lot of companies' revenue is slowing down.