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It demonstrates that investors see expenses go down and therefore want to buy more stock. Whether it's because they believe correctly that Grindr is overstaffe
by Macha 3y ago
It demonstrates that investors see expenses go down and therefore want to buy more stock.
Whether it's because they believe correctly that Grindr is overstaffed, believe incorrectly that Grindr is overstaffed, or just intend to sell again before the consequences become clear is something that will only become clear in time.
- throaway920181 3y agoYeah, this is nothing new. Stocks always bump on layoff news.
- jakarta 3y agoit demonstrates that investors want to see a return on their investment more quickly in a higher cost of capital environment. Look across tech, all of these companies staffed up hard, raised at too high of valuations, and are now fat with slow growth and no profitability.
- Macha 3y agoEven in ZIRP times, layoffs resulted in stock price growth also. See for example Amazon's Feb 2018 layoffs which caused their stock price to jump from $70 to $80.