this post was submitted on 07 Jun 2023
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Also what hasn't been touched on very much in this thread is the increase in interest rates from the Federal Reserve. The money house has shut off and expansionary business policy won't work for the foreseeable future even without a recession. All these internet companies have developed and grown in an essentially 0% interest rate environment that rewarded growth beyond all else. With rates increasing, investment in risky companies that may or may not grow is becoming a less attractive option and so I bet a lot of these non-profitable, growth-focused web companies are seeing liquidity dry up and are having to reach profitability to avoid bankruptcy since servicing new debt in this current interest environment is basically impossible without solid cashflow and a clear corporate vision.
This is leading to all these companies suddenly raising prices, cutting staff, choking competition, and cheaping out to try and break even instead of grow. It's a paradigm shift.
Crazy to hear people talking about this stuff out in the wild. Feels like I'm on superstonk, only place I tend to hear anyone connecting these dots.
Speaking of superstonk, is there a good superstonk or wsb or personalfinance lemmy community? I am subbed to the beehaw finance community, but it's really not active yet and seems to be a bit more economics leaning than pure personal finance or investing.
The subs I spend a lot of time on were FIRE, financialindependence, wsb, and personal finance and I miss them lol.
The Canadian GameStop folks have a community on lemmy.ca, but we are still very few.
I would like to join a federated wsb community too, if there's anyone with any integrity willing to run it impartially. Anyone running such a place has a conflict of interest imo, the tendency is moral hazard. At least with single stock communities you know their motive.