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> no apparent reason besides investors wanted them? If investors want it, I don’t see why any other reason would be necessary, ever, to explain a company’s beh

• hn_throwaway_99 2y ago
  Yeah, that's why the comment you are responding to makes no sense. "Investors believe they can get the same amount of revenue with fewer expenses" - is that supposed to be some sort of "group think"??? Not to mention that the proposition of "for no apparent reason" is total BS to begin with. There was a ton of over-hiring during the pandemic for an expected long-term change in consumer demand that never materialized. Plus, lots of people just fundamentally don't understand how rising interest rates make many projects uneconomic. If your company is chugging along making, say, 4% return on capital, that may be fine in the ZIRP era, but when treasuries are paying north of 5% it means it makes more economic sense to close down the company and put your cash into government bonds. That's a bit of an oversimplification but not by much. Rising interest rates fundamentally mean there is a higher bar for getting ROI.