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> Maybe they overhired and used the downturn as a reason to correct? What downturn? I understand Amazon is reporting poor results, but they seem to be mostly

> Maybe they overhired and used the downturn as a reason to correct? What downturn? I understand Amazon is reporting poor results, but they seem to be mostly due to reporting losses from past investments that didn't panned out yet, like Rivian. But it's not like each and every tech turn in the world has invested in Rivian.

andsoitis 4y ago
Alphabet: 34% decline in profit. Fourth consecutive quarter of declining profit.
- simplotek 4y ago
  > Alphabet: 34% decline in revenue. Fourth consecutive quarter of declining revenues. That does not sound factual at all. Where did you picked that up? According to Variety, Alphabet's revenue on Q4 2022 was $76.05 billion and up 1% in spite of a 8% ad revenue drop. https://variety.com/2023/digital/news/alphabet-google-q4-2022-earnings-youtube-revenue-falls-1235510514/ https://variety.com/2023/digital/news/alphabet-google-q4-202... Are 1% increases in a massive revenue of $76.05 billion now passed off as bad results?
  - andsoitis 4y ago
    I meant profit, not revenue. https://www.nytimes.com/2023/02/02/technology/alphabet-earnings.html https://www.nytimes.com/2023/02/02/technology/alphabet-earni...
    - aaomidi 4y ago
      And you do realize profit will go down if you increase stock buybacks right?
    - simplotek 4y ago
      > I meant profit, not revenue Honest mistake. Happens to the best of us. Still, regarding profit, I'm not sure that firing people in profitable companies effectively contributes to higher profits. Sure, you pay fewer salaries. However, that comes at a cost, such as supposedly cutting programs the company deemed valuable and eroding the company's ability to conduct their business. Also, it seems Google's reaction to drops in profit was to fire 6% of their staff. Does that even register in Google's accounting? I mean, payroll is typically 20-30% of a healthy company's expenditure. And would a hiring freeze not reach the same goal without causing any disruption? I mean, apparently Google is still hiring and has a large volume of job openings. If the amount of people in their payroll is too much as is then why are they hiring even more? https://careers.google.com/jobs/results/ https://careers.google.com/jobs/results/
- aaomidi 4y ago
  https://www.macrotrends.net/stocks/charts/GOOG/alphabet/revenue https://www.macrotrends.net/stocks/charts/GOOG/alphabet/reve... What?
  - jpadkins 4y ago
    revenue != profit https://www.macrotrends.net/stocks/charts/GOOG/alphabet/ebitda https://www.macrotrends.net/stocks/charts/GOOG/alphabet/ebit...
    - aaomidi 4y ago
      I think OP changed their initial post, lol
  - dilyevsky 4y ago
    Profit < Revenue
    - aaomidi 4y ago
      I believe op changed their initial post.
digger250 4y ago
This is a consequence of money getting more expensive. When rates are low, investors pile money into non-revenue producing startups in hopes that something will return 1000x. Now rates are up and the smart money is moving elsewhere.
- simplotek 4y ago
  > Now rates are up and the smart money is moving elsewhere. That would only explain drops in future investments, but we're seeing profitable companies with astronomical revenues from their cash cows diving into a massive firing spiral. More importantly, growing interest rates is not exactly the definition of a downturn.
  - extheat 4y ago
    Growing interest rates propagate throughout the economy. The goal of higher interest rates (aside from debt & borrowing becoming substantially more expensive) is to bring down demand and slow the economy.
  - disgruntledphd2 4y ago
    Interest rates go up, future revenue becomes less valuable, companies lay people off to add to their margins to preserve their valuations.
    - simplotek 4y ago
      > Interest rates go up, future revenue becomes less valuable (...) I don't think this is true at all. Central banks hike interest rates to limit and reign in inflation. It's the exact opposite of what you claimed.
      - disgruntledphd2 4y ago
        In terms of people deciding to invest in a company, high interest rates definitely make future revenue less valuable in terms of discounted cash flow models.

andsoitis 4y ago

Alphabet: 34% decline in profit. Fourth consecutive quarter of declining profit.

simplotek 4y ago
> Alphabet: 34% decline in revenue. Fourth consecutive quarter of declining revenues. That does not sound factual at all. Where did you picked that up? According to Variety, Alphabet's revenue on Q4 2022 was $76.05 billion and up 1% in spite of a 8% ad revenue drop. https://variety.com/2023/digital/news/alphabet-google-q4-2022-earnings-youtube-revenue-falls-1235510514/ https://variety.com/2023/digital/news/alphabet-google-q4-202... Are 1% increases in a massive revenue of $76.05 billion now passed off as bad results?
- andsoitis 4y ago
  I meant profit, not revenue. https://www.nytimes.com/2023/02/02/technology/alphabet-earnings.html https://www.nytimes.com/2023/02/02/technology/alphabet-earni...
  - aaomidi 4y ago
    And you do realize profit will go down if you increase stock buybacks right?
  - simplotek 4y ago
    > I meant profit, not revenue Honest mistake. Happens to the best of us. Still, regarding profit, I'm not sure that firing people in profitable companies effectively contributes to higher profits. Sure, you pay fewer salaries. However, that comes at a cost, such as supposedly cutting programs the company deemed valuable and eroding the company's ability to conduct their business. Also, it seems Google's reaction to drops in profit was to fire 6% of their staff. Does that even register in Google's accounting? I mean, payroll is typically 20-30% of a healthy company's expenditure. And would a hiring freeze not reach the same goal without causing any disruption? I mean, apparently Google is still hiring and has a large volume of job openings. If the amount of people in their payroll is too much as is then why are they hiring even more? https://careers.google.com/jobs/results/ https://careers.google.com/jobs/results/
aaomidi 4y ago
https://www.macrotrends.net/stocks/charts/GOOG/alphabet/revenue https://www.macrotrends.net/stocks/charts/GOOG/alphabet/reve... What?
- jpadkins 4y ago
  revenue != profit https://www.macrotrends.net/stocks/charts/GOOG/alphabet/ebitda https://www.macrotrends.net/stocks/charts/GOOG/alphabet/ebit...
  - aaomidi 4y ago
    I think OP changed their initial post, lol
- dilyevsky 4y ago
  Profit < Revenue
  - aaomidi 4y ago
    I believe op changed their initial post.

digger250 4y ago

This is a consequence of money getting more expensive. When rates are low, investors pile money into non-revenue producing startups in hopes that something will return 1000x. Now rates are up and the smart money is moving elsewhere.

simplotek 4y ago
> Now rates are up and the smart money is moving elsewhere. That would only explain drops in future investments, but we're seeing profitable companies with astronomical revenues from their cash cows diving into a massive firing spiral. More importantly, growing interest rates is not exactly the definition of a downturn.
- extheat 4y ago
  Growing interest rates propagate throughout the economy. The goal of higher interest rates (aside from debt & borrowing becoming substantially more expensive) is to bring down demand and slow the economy.
- disgruntledphd2 4y ago
  Interest rates go up, future revenue becomes less valuable, companies lay people off to add to their margins to preserve their valuations.
  - simplotek 4y ago
    > Interest rates go up, future revenue becomes less valuable (...) I don't think this is true at all. Central banks hike interest rates to limit and reign in inflation. It's the exact opposite of what you claimed.
    - disgruntledphd2 4y ago
      In terms of people deciding to invest in a company, high interest rates definitely make future revenue less valuable in terms of discounted cash flow models.