31–40 of 240 posts
The CEO and founder of Twitch announced a week ago that he was leaving the company. It's admirable to see a captain going down with his ship. https://news.ycombinator.com/item?id=35184011
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I don’t understand how this is affecting AMZN’s cash flow though. Seems like both their costs and revenues would scale similarly with inflationary effects, leaving a similar profit margin %.
Once you realize that sometime in the past 10-20 years the economy started having nothing to do with actual goods and services and instead turned into some sort of weird game played by the powerful and the rich it makes more sense. Personally I peg it happening sometime around 2008 when it became clear the rules didn't matter, consequences were for the poor and party hearty. Explain how else a company like Uber that…
But the economy is working as intended and it's actors are merely reacting to incentives. The question is whether the wrong incentives have been set that have created large sectors of the economy that are completely dependent on permanently low interest rates.
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Because their income comes from advertising. Because the economy sucks in general, companies in all industries are being more careful with where they spend their marketing budget. You can see this reflected in the revenue of other advertising companies as well such as google and meta.
https://www.macrotrends.net/stocks/charts/GOOG/alphabet/reve... https://www.macrotrends.net/stocks/charts/META/meta-platform... Is it?
Google has their 3rd worst quarter for YoY Quarterly growth out of the last 12 years.
Facebook has 3 consecutive quarters of negative yoy growth
> Like many companies, our business has been impacted by the current macroeconomic environment I must be living under a rock because, outside big tech self-inflicted wounds, I don't know what they are talking about. Is it Ukraine? SVB? Chinese housing market?
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Why would Amazon (owner of twitch) care about that? They have tons of cash and revenues are still quite strong. AMZN isn’t looking for VC funding, they are the whale. Net income is hard to judge — yes it’s down but not only is Amazon famous for reinvesting all profits and claiming $0 of net earnings, but they’ve also been writing off a lot of one time charges for severances related to these layoffs.
Because their income comes from advertising. Because the economy sucks in general, companies in all industries are being more careful with where they spend their marketing budget. You can see this reflected in the revenue of other advertising companies as well such as google and meta.
But to be clear the economy does not currently "suck in general" hence the confusion over blaming "the current macroeconomic environment".
These companies (including advertisers) are trying to get out in front of an economic downturn that hasn't yet materialized. And if it does materialize, all these companies will have a hand in causing it due to their reduced spending and layoffs which we know has potential to cause an economic slowdown.
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The "macroeconomic environment" is the evaporation of available VC funding because higher interest rates provide more lucrative investments elsewhere.
Why would Amazon (owner of twitch) care about that? They have tons of cash and revenues are still quite strong. AMZN isn’t looking for VC funding, they are the whale. Net income is hard to judge — yes it’s down but not only is Amazon famous for reinvesting all profits and claiming $0 of net earnings, but they’ve also been writing off a lot of one time charges for severances related to these layoffs.
> Like many companies, our business has been impacted by the current macroeconomic environment I must be living under a rock because, outside big tech self-inflicted wounds, I don't know what they are talking about. Is it Ukraine? SVB? Chinese housing market?
Federal reserve interest rates. When interest rates are low, money flows more freely. When interests rates are up, it's harder to lend/borrow, money flows less freely, and the economy cinches up as a whole. This is a major simplification to a very complex system, but it happens because e.g. as someone with money, you'd rather just put it into a government bond that will for sure pay you 4%, rather than chasing specul…
Earlier quoted context omitted.
Because their income comes from advertising. Because the economy sucks in general, companies in all industries are being more careful with where they spend their marketing budget. You can see this reflected in the revenue of other advertising companies as well such as google and meta.
>Because the economy sucks in general But to be clear the economy does not currently "suck in general" hence the confusion over blaming "the current macroeconomic environment". These companies (including advertisers) are trying to get out in front of an economic downturn that hasn't yet materialized. And if it does materialize, all these companies will have a hand in causing it due to their reduced spending and layof…