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The thing to understand is the the companies primary product isn't the boring and annoying things employees are are working on and customers pay for. It's the c
by Gibbon1 4y ago
The thing to understand is the the companies primary product isn't the boring and annoying things employees are are working on and customers pay for. It's the companies stock and bond offerings. Every decision is subordinate to that.
- Cthulhu_ 4y agoExactly that. Tesla did about $53B in revenue in 2021, but they gained about $300B in market cap (going by guesstimates based on https://companiesmarketcap.com/tesla/marketcap/ https://companiesmarketcap.com/tesla/marketcap/). A company and its owners doesn't get wealthy from revenue or sales, but from pumping up their stock. For some reason, investors love both layoffs AND headcount increases.
- kneebonian 4y agoI really think this is the problem the financial world of numbers and spreadsheets and funny money has become almost completely divorced from the economic world where people actually make things and do things, and most of the "money" produced is really just by finding complicated ways to transfer risk from one person to another while retaining the money. Too many people are busy trying to play financial games and not enough are actually looking to produce anything of value. It is worrisome where this long term trend takes us.