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> what profits are you talking about to offset the losses?

You don’t need profit to offset the losses.

You can simply reduce spending / expenses.

In principle yes, but all metrics so far suggest they are losing money every user interaction. There is very little network effect with these tools so It's not like they can start cutting back on staff and feature deployment.

lol that’s a line so incredibly naive it hurts.

One does not “simply” reduce spending.

> One does not “simply” reduce spending.

Why does stock price go up after mass layoffs?

What happens when the only way to reduce spending is to reduce your assets? Seems like circular logic at that point. I suppose the market isn’t expected to be rational all the time, but eventually it is.

By your logic any company should just layoff everyone and profit on the stock price going to the infinity.

Company would no longer function of course but why it would matters if the stock price is through the Moon?

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