• teyrnon@sh.itjust.works
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    1 day ago

    They aren’t going to get anywhere near profitable if the their capital expenditures are added into the mix, amortization or no, they are so far in the hole they probably will have to offload it in some kind of texas two step kind of scheme where they spin off their debts into a subsidiary.

    • BreakerSwitch@lemmy.world
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      2 hours ago

      Well, you’re assuming that a company needs to be profitable for investors to get their return. Don’t be ridiculous. You just IPO and cash out with no plan on how to become profitable and then the company collapses. We’ve seen this play a million times before. Also AI companies are big enough that NASDAQ just changed their rules for adding new companies to indexes so that AI companies can get forced into your retirement fund 15 days after joining the market, and then the private investors can cash out on your retirement fund buying in and collapse the stock as soon as you’re involuntarily invested. This is why spacex (which owns xai and twitter), openai, and anthropic are all coincidentally having their IPOs this year

      • teyrnon@sh.itjust.works
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        2 hours ago

        Oh yes. Pension funds are the perennial suckers of wall street too.

        They should stick to solid non stock investments, the managers of these funds, ivy league douchebags, get paid regardless.

      • Dale@lemmy.world
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        1 day ago

        These companies with no discernible services or usefulness to society are simply too big to fail!

        • Sanctus@anarchist.nexus
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          1 day ago

          Theres a usefulness. Super code auto complete at its core is cool. Filling 100 rows of excel with data I supplied is dope. Is it worth making everyone sick and poor and frying the planet? Absolutely not. But the surveillance it can provide apparently is to our overlords.