Some garbage journalism. The company just started making a profit, they are not collapsing. They have something like a billion dollars in cash and practically no debt. Posting this shit as the financial report was released is a distraction
They started making a profit by cutting costs everywhere they could. They’ve bought themselves time, but in doing so have stymied any efforts to evolve their business model. With no means to fix those problems the company will slowly whittle away year after year.
How have they no means to fix their business model by cutting back on what does not work? Like.. are they supposed to just keep burning money year after year on the same direction that is the cause of burning money in hopes of something magically changing about it?
That would be the sunk cost fallacy, no? If anything they now have a chance to direct their attention to getting new revenue streams because they stopped the bleeding. They got no debt except some remnant of a 0% loan by the French government. Not sure what will whittle away at them?
I do not like their current business model and do think they need to adapt, but for the first time since 2018 they even have the financial situation to try.
New ceo seems to really be turning things around. Business model seems to be changing, where I live they sell lots of pop culture items, clothing and homewares now too
Honestly they fucked themselves they could have pivoted at the top of the hype. even like start selling PC parts or something. obviously the business was failing and they got bought out to prove a point to wall street no other reason. They fucked a great opportunity
I don’t know anything about whether it is or isn’t profitable.
But in this current iteration of the capitalist system we live in, profit isn’t enough. Unlimited growth is the only metric. If you stop growing at double digit rates, then you’ve failed.
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