Meta, Amazon, Stripe, Twilio, Salesforce etc are all profitable companies. That’s where the majority of non crypto layoffs came from.
I was talking about smaller, unprofitable, non-market dominating firms. If they are not profitable they will have to raise or die. And raising in the environment of 5+% rates and poor overall tech stock performance may get brutal. Currently, many of those companies still have significant runways (because they were able to raise a lot earlier), but this will start running out in the next several months. This may already be starting: two of my friends who work in such small companies (robotics and lasers) are sensing job uncertainty ahead. My 2c.
$1.1 billion operating loss the past four quarters on a mere $3.6b in sales. $915m operating loss fiscal 2021, $492m operating loss 2020, $369m operating loss 2019, $108m operating loss (on $650m in sales) for 2018, and so on. They have always lost money and are currently gushing red ink.
It's definitely part of the reason their stock has collapsed in such a dramatic way (a particularly unsupported valuation previously). While even most highly profitable tech stocks have dropped by a lot, Twilio's drop of ~89% is largely reserved for the group of very unprofitable extreme valuation tech stocks.
They are saying that many unprofitable companies haven't done their layoffs yet, because they're still coasting on huge funding rounds from 2021. Thus, there are more axes yet to fall.
Not sure how much stock I actually put in that argument -- lots of VC-funded companies are already doing layoffs, too -- but I think you're sort of agreeing with them.
Their stocks are either in or dangerously close to penny stock category.
November appears to be the exception where those profitable big company layoffs dominate but it's still not by much.
The long tail is the king, as always.