this post was submitted on 02 Jul 2023
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No Stupid Questions

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YouTube disallowing adblockers, Reddit charging for API usage, Twitter blocking non-registered users. These events happen almost at the same time. Is this one of the effects of the tech bubble burst?

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[–] Rinox@feddit.it 552 points 1 year ago (46 children)

I think it's a consequence of higher interest rates drying up VC money, meaning that tech companies now have to actually be profitable, rather than just grow.

If the plan was grow now, profit later, then later has come

[–] InverseParallax@lemmy.world 131 points 1 year ago (5 children)

Nailed it, investors are demanding profit increases, it's not just interest rates (though they're the main reason) but also the corporate tax cuts in 2018 basically dumped a ton of profit onto corporations because they repatriated all their offshore cash they'd been hoarding.

That bump lasted 2 years, but the expectation of higher revenue is still there, it doesn't matter if you got lucky at slots last month, if you make your normal salary this month investors will be absolutely pissed.

[–] insomniac@sh.itjust.works 36 points 1 year ago (4 children)

This sounds too stupid to be real but I was working for one of the largest corporations in the world during this period and we were congratulated on 20% growth even though we did nothing. Of course we didn’t get an extra bonus or anything but they acted like we had an incredible year when we really just had an average year with a massive tax cut.

Then the next year, our goal was to grow at 20% again and when we missed it by 17%, no one got a bonus or raise.

This timeline is the stupid one.

[–] Bautznersenf@feddit.de 1 points 1 year ago

Most companies really are that retarded because everyone wants to look good and take credit for every great thing happening. People like that should not be in charge of anything.

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