Let’s be real, none of these companies are teetering on the edge of bankruptcy — in fact, they were recently minting money.
The answer is that investors have changed how they’re evaluating companies, says Michael Cusumano, the deputy dean at the MIT Sloan School of Management. Generally, when companies are growing really fast — like when revenue is shooting up 20 percent or 30 percent a year — nobody cares about profits, Cusumano says. But we’re not in a growth period right now, so investors are being more cautious.
But we’re not in a growth period right now, so investors are being more cautious.https://www.theverge.com/2023/1/26/23571659/tech-layoffs-facebook-google-amazon