US tech stocks see sharp falls over AI cost fears

Re:US tech stocks see sharp falls over AI cost fears by karmakurtisaani on Friday October 30, 2026 @03:39PM (#50309143)

This is not true. A major shareholder would definitely have a cash cow company keep producing a steady 5% dividend return plus stock growth over a one-off 30% gain followed by slow death, as they cannot liquidate their position at the peak price anyway. (This was not the case with reddit, but just to illustrate an ideal situation).

It's a failure of the board of the company to allow the CEO to make a quick buck while trashing the future, and can lead to law suits.

The real problem is that the CEO might just have been incompetent enough to think reddit can get away with anything.

On a side note, I stopped commenting on reddit when they got rid of 3rd party apps and stopped lurking after they forced log in. Lemmy has been a decent alternative, but could still use more users.

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Re:US tech stocks see sharp falls over AI cost fears by lenerdenator on Sunday November 01, 2026 @01:36PM (#50328331)

> It's a failure of the board of the company to allow the CEO to make a quick buck while trashing the future, and can lead to law suits.

Given the numbers I see here [0], I wouldn't count on the lawsuits to cause a meaningful change in the Jack Welch tactics being used.

Most lawsuits are either dismissed or settled out-of-court.

[0] https://securities.stanford.edu/research-reports/1996-2019/C...

EDIT:

I'll also add, the average shareholder doesn't know that they do, in fact, hold shares. If you asked someone with a 401(k) or Roth IRA which equities their investments are held in, they're going to say "Uhhh... Ameriprise?" or something about the company that manages the portfolio, not the actual contents of the portfolio itself. We've abstracted the living hell out of equities ownership.

[ Parent | on HN ]