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A comment on The 'white-collar bloodbath' is all part of the AI hype machine. Parent comment

Re:The 'white-collar bloodbath' is all part of the AI hype m... by xorcist on Saturday May 31, 2025 @08:04AM (#44143691)
> because he simply thought he could run a lot leaner

Because he suddenly had to pay interest on that gigantic loan he (and his business associates) took to buy Twitter.

It may not be the only reason for everything that happened, but it sure is simple and has some very good explanatory powers.

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Re:The 'white-collar bloodbath' is all part of the AI hype m... by huntertwo on Saturday May 31, 2025 @08:29AM (#44143819)
Other companies have different reasons to cut costs, but the incentive is still there.
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Re:The 'white-collar bloodbath' is all part of the AI hype m... by xorcist on Saturday May 31, 2025 @09:03AM (#44144007)
Stocks are valued against the risk free interest, or so the saying goes.

Doubling interest rate from .1% to .2% does a lot for your DCF models, and in this case we went from zero (or in some cases negative) to several percentage units. Of course stock prices tanked. That's what any schoolbook will tell you, and that's what any investor will expect.

Companies thus have to start turning dials and adjust parameters to make number go up again.

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