First all the bs with Twitter and Elon, then Reddit having an exodus to Lemmy (not complaining lol), then Twitch. Are we like, in an alternate self healing dimension or something?

  • gotofritz@beehaw.org
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    1 year ago

    I think this is “normal” and the previous status was a glitch due to the low interest rates. Investors threw money at tech companies and didn’t care whether they made any money. Not any more. It’s now “make money or go bust”. I am not sayiny these new trends will make them money, but IMHO it’s what’s driving them

    • worfamerryman@beehaw.org
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      1 year ago

      That is a great point. I never considered this to be an effect of interest rates increasing. But I think Reddit was already profitable.

      But it recently went public and I think the board is like, “Make more money now!”

      They really just want to get everyone on the Reddit app so they can collect user data to sell and to show advertisements.

    • abraxas@lemmy.ml
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      1 year ago

      I dunno. A lot of the investors were (are) on waverides from previous success. There are absolutely loan-backed ones, but as one startup investor said to me “I look for 200-300% return in 5 years to not call something a failure.” With expectations like that, you hold to record profits even if 2/3 the companies you invest in fail.