[thrance]

Personally, I think AI is just a convenient scapegoat for these mass layoffs. Also, these kinds of announcements contribute to sustaining the AI hype which all tech investors benefit from. And investors looove hearing about mass layoffs, stock goes up every time without fail.

[Baljhin]

> Personally, I think AI is just a convenient scapegoat for these mass layoffs.

Coincidentally, same day as your post, Forbes published an article stating the same: https://news.ycombinator.com/item?id=48128765

[benmusch]

cloudflare stock went down, genius

investors are not some nefarious monolith cheering for companies to make decisions based on how it benefits The Vibes. they're analysts assessing business decisions.

[oytis]

It went down on poor earnings call. Layoffs were probably an attempt to soften the blow. Hard to tell what was the effect, because the two happened simultaneously

[yellow_lead]

What was bad about the earnings? Every metric I am seeing is beating expectations. Genuinely curious

[matwood]

Most likely poor forward guidance.

[mountainriver]

This is the simplest and almost certainly correct answer.

I’ve seen this at a number of public companies, and is a reason I hate working for them. These decisions are always unbelievably short sighted and ruin companies in the long term.

[surgical_fire]

Wtf are you talking about? Investors are just gamblers with a fancier title.

They absolutely invest based on vibes.

[benmusch]

then why did the riveting stock analysis above mis-predict the market?

[surgical_fire]

Because the market makes no sense. It's just vibes. Trying to make sense of it is a fool's errand.