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They are laying off people because the value of the company just tanked 70% in a few months. The value of a company contains all the future estimated discounted
by martindbp 4y ago
They are laying off people because the value of the company just tanked 70% in a few months. The value of a company contains all the future estimated discounted earnings, the trend of earnings matters more than current earnings. The actions of a company is determined by what its shareholders want, which is to maximize stock price, not be satisfied with X billions in profits when the stock is down 70%. The actions of companies will remain a mystery to people who do not understand this.
- oblio 4y agoThe value of a company contains Lalaland logic, as Tesla, Toyota and GameStop prove. The link between actual business logic and company valuation broke down around 2010.
- roflyear 4y agoWell, yeah. But I think that mechanism is pretty awful.
- martindbp 4y agoYeah it's awful, but that's life. FWIW I have family working at Meta so I'm not just being callous.