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Please. Stripe is privately held so let's look at a market comp, SQ. SQ 2021 Revenue: $17B SQ 2021 cash and short term investments: $5.3B Stripe 2021 Revenue
by TomBombadildoze 4y ago
Please. Stripe is privately held so let's look at a market comp, SQ.
SQ 2021 Revenue: $17B
SQ 2021 cash and short term investments: $5.3B
Stripe 2021 Revenue: $12B
Similar businesses, operating in the same market, with the nearly the same number of employees (about 8000). Barring exceptional circumstances, we would expect their financial health to be roughly similar.
You said it yourself:
> the leaders have to... [deal] with investors
The economy is contracting and their share price is falling. They could afford to dip into cash and keep everyone on board but their investors are more concerned about propping up the valuation. They don't have two shits to give about the people they're letting go.
- tomnipotent 4y agoHow can the share price of a private company be falling? > They could afford to dip into cash Why should they risk cash reserves with an uncertain future? So that they can layoff 30% later on if things get worse?
- TomBombadildoze 4y agoTheir own internal price target, the FMV they assign to shares. https://www.wsj.com/articles/stripe-cuts-internal-valuation-by-28-11657815625?mod=hp_lead_pos4 https://www.wsj.com/articles/stripe-cuts-internal-valuation-...
- czbond 4y agoDisagree. A CEO does not cut employees during a time when others are laying off unless business doesn't need / can't support/ not prudent to retain those employees. Why? Because periods like now is the absolute best time to steal market share from established companies - which would grow the team and business. Startups (competitors) begin to post less risk because they'll be hard to find financing. So - if growing the business is a CEO's top responsibility...if the leadership felt they could steal business from others that experience attrition - they would. My guess is they don't seem to feel that way about the current moment.
- conductr 4y ago> The economy is contracting and their share price is falling. They could afford to dip into cash and keep everyone on board but their investors are more concerned about propping up the valuation. They're worried about surviving the contraction, nobody knows how long it will last and that cash only goes so far.
- ceres 4y ago> They could afford to dip into cash and keep everyone on board but their investors are more concerned about propping up the valuation This an example of how bullshit jobs are created. Why keep people on a payroll if you have no use for them anymore?