Hacker News new | ask | show | jobs
by eli 4085 days ago
Isn't another perfectly plausible explanation that the revenue from the main product is so robust it is fueling an expansion into related markets?
1 comments

Sure. However, there are two things that seem to support this:

1. Social networks seem to decline over time as newer alternatives or substitutes arise. Specifically, it seems LinkedIn is not as strong as it once was, and growth can no longer be sustained on the percentage basis.

2. Generally, a company that has amazing product market fit and strong growth in an offering would reinvest the lion-share of capital back into the business.

I don't purport to know what is the case here, just providing the counterpoint.