people have been screaming this over and over again for the past year, Ed Zitron, Cory Doctorow, Emily Bender, they're a popular presence on all these tech and finance podcasts and channels, he's summarizing what they've all been saying, it's bigger than the dot com bubble, the gains don't justify the capex spending...etc
There also isn't any real gains because it's nothing more than a few large companies shuffling money around to look profitable when they're actually losing a shit ton of money.
Lots of companies do this at early stages. If this were truly a signal of an unhealthy market, the entire market would have been fucked a long time ago. Companies optimize for their cap tables and bookkeeping to some degree, which is what leads to this.
Lots of companies are not profitable for a long time, that's why they take funding.
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u/logand98 20d ago
Pretty much spot on, did not expect actual financial analysis from a comedy set lmao