They aren't reporting anything yet. What we hearing is just from news media who get their leaks/info from investors who get some form of IR reports/ presentation.
Both will do public reporting only when they IPO[4] and have regulatory requirement to do so every quarter.
For private companies[1] reporting to investors there are no fixed rules really[3]
Even for public companies, there is fair amount of leeway on how GAAP[2]expects recognize revenue. The two ways you highlight is how you account for GMV- Gross Merchandise Value.
The operating margin becomes very less so multiples on absolute revenue gets impacted when you consider GMV as revenue.
For example if you consider GMV in revenue then AMZN only trades at ~3x ($2.25T/$~800B )to say MSFT($2.75T/$300B) and GOOG ($3.4T/$400B) who both trade at 9x their revenue.
While roughly similar in maturity, size, growth potential and even large overlap of directly competing businesses, there is huge (3x / 9x) difference because AMZN's number includes with GMV in retail that GOOG and MSFT do not have in same size in theirs.
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[1] There are still a lot of rules reporting to IRS and other government entities, but that information we (and news media) get is from investors not leaks from government reporting - which would be typically be private and illegal to disclose to public.
[2] And the Big 4 who sign off on the audit for companies prefer to account for it.
[3] As long as it is not explicit fraud or cooking the books, i.e. they are transparent about their methods.
[4] Strictly this would be covered in the prospectus(S-1) few weeks before going public and that is first real look we get into the details.
Does the GAAP accounting matter if everyone passively buys shares due to the new fast entry rules, which corruptly will force us all to buy into these companies? The fundamentals and true value seem less relevant than ever:
Diluting the index entry rules, only devalues the index utility. When it becomes a bigger problem, other indices with higher quality controls will out compete the current ones and be used by asset managers seeking safety.
More likely than not, most of us are already holding stock in these companies one way or another. All the Mag 7 hold a major chunk of OAI and Anthropic stock anyway, slower entry does not make it less risky for us.
Even if the big tech companies did not hold any stock, they are still the biggest vendors and their own order books is hugely impacted by the AI demand from these two ( and others in this space), either way we are all in this together.
> When it becomes a bigger problem, other indices with higher quality controls will out compete the current ones and be used by asset managers seeking safety
I personally find this is the correct solution, since indexes are over-inflated either way, this brings much needed sanity to the index. Your index is now worth much more or much less based on how you view the AI bubble and you are forced to understand and correct your forward looking investments accordingly.
Passive investments are good, but if taken too far as they clearly have been in the last decade they become a scam. Everyone is SIPing into it, and there is infinite liquidity. Until one big whale finally decides they are booking it, then all hell will break loose on the same damn day.
You can just choose not to play the accounting game, and only choose the ones that actually gaap viable as investment opportunities. For example mag7 - tesla are all relatively cheap when they dip.
Some times the best play is just not to play. If you think they are too risky, walk away. There are enough good oppotunities
They aren't reporting anything yet. What we hearing is just from news media who get their leaks/info from investors who get some form of IR reports/ presentation.
The $24b figure is literally in OpenAI's announcement.
The $19b ARR and $6b added in Feb came directly from Anthropic CEO recently.
I am reminded of the "I declare bankruptcy" meme from the 2000's TV series Office.
When we say reporting it means there are statutory submissions with an auditor signing off, with legal liability. As the other reply referenced consequences for doing this incorrectly can be severe - Arthur Anderson is no more after all because of Enron.
A Press Release (of a private entity) does not have to satisfy this high bar.
Press release does mean no constraints, for public companies, disclosure of important information by officers and other insiders have strong controls. Even if its the just a rocket/poop emoji on a casual social media platform. Lawyers have to refile with the SEC in the expected format. Even private companies have restrictions on not claiming things fraudulently to investors, but these are accredited investors with lesser controls than retail.
Not employees are hired though, a fair amount are added through acquisitions. Reducing staff could be just streamlining redundancies .
Not the case here [1], but it not always bad planning.
Even without acquisitions, business conditions can change rapidly things like tariffs, interest rates , war or competition due to newer tools etc , as an investor you can would want leadership to move fast and course correct, rather than be held by the sunk cost fallacy.
All else being equal, the way investors would see a change like this - is now the company is no longer wasting 7.5B/yr in the future and their current cost was already priced in.
However all else is rarely the same, there could be other factors, like slowing sales growth projections which can bring down the multiples .
Oracle is still trading at 28x P/E historically they typically traded at 15x, given the growth and risk profile a more realistic number .
Since 2022 (ignoring 2020 spikes) the number has been going up are basis the expectation that their cloud business will really benefit from AI significantly.
If the market no longer has the confidence —- it has already cooled a bit since October then stock will keep dropping, layoffs will only slow it down a bit .
The timing is critical, because leverage/sale of Oracle stock is how the Warner Bros Discover acquisition is being funded .
The increasing doubts about that financial viability is why that stock risk premium is increasing on Warner .- Currently trading at 27 although acquisition price is 31 and it was trading at 29 a month back . Also senior executives like Zaslav are selling now at 27 which they less likely to if they believed deal will close at 31 soon.
TLDR; this 30k layoff is an attempt to strengthen/save the other acquisition Oracle is indirectly financing.
[1] although the Cerner acquisition added 30k employees to Oracle 3 years back. This doesn’t seem related to that. Oracle did not have a strong overlapping BU, there were/are some redundancies as in any acquisition but certainly not 30k
In the context of knowledge workers, It is really about Claude Cowork against Microsoft Copilot suite for all their applications, which is what the OP is referencing ?
Github Copilot can use Claude APIs and has its own problems and challenges.
Microsoft AI performance is primarily not being affected by Github - while significant is much much smaller part of the enterprise revenue stream and their DAU compared to their Office suite apps.
Same for their PR exposure. It is lot more likely to here about Copilot in the office context than Github outside of small niche's like this forum.
First I thought they were AWS lambda functions, perhaps possible if they are over-provisioned for very concurrency or something similar $25k/month is in realm of possibility.
But no, the the post is talking about just RPC calls on k8s pods running docker images, for saving $300k/year, their compute bill should be well above $100M/year.
Perhaps if it was Google scale of events for billions of users daily, paired with the poorest/inefficient processing engine, using zero caching layer and very badly written rules, maybe it is possible.
Feels like it is just an SEO article designed to catch reader's attention.
Perhaps not, However Gamification of fitness is huge motivation for many people to keep exercising and maintaining the rhythm which in fitness is quite important.
Such social sharing + gamification systems are no different than Github contribution streak or StackOverflow awards for streaks etc. Those streak award only benefited the platform, while awarding us fake points and badges, the fitness streak rewards and social sharing benefits the users health so arguably has a stronger case for being gamified.
We can argue all day that people should want to do fitness to be healthy, not on how they look or other people see them or their fitness, but reality is that the social component of fitness is a big part for many people be it at the gym or in an app.
Logging is one thing, syncing it to the cloud is unnecessary and shouldn’t even be the default; making any of the location data available publicly is just terrible. If you want to share an individual workout map so you can say you circumnavigated Manhattan or whatever, fine! Share that one workout with your friends! (And ideally as a freaking screenshot rather than some database) Anything else is far too risky.
It doesn't need to be anything nearly that dramatic as assassins, because economies of scale both lower the bar and make most attacks impersonal. Consider how odd it would be for someone in 2025 to say: "Computer security?I haven't done anything to personally offend a genius hacker."
Imagine this data going to a burglar, who has a digital dashboard of nearby one-person properties and when the owner is likely to be out, able to act with confidence they can leave before the victim could return.
Sure, sophisticated international hitmen won't have any interest in catching you in ambush... but that doesn't make you safe from a local rapist of opportunity.
They are. A related example is criminal gangs tageting gun owners in France after the dataleak at the sport shooting federation. This one has been well covered. There have been a few hundred targeted robberies (on old people mostly) and one or two deaths (predictably).
In Western Europe there are also foreign burglar gangs that go on sprees for a few weeks. They're well organised but don't have time to do the stalking. They use publicly available data as much as they can.
do you have any evidence to back your claim? gangs employing teams of underage burglars assisted by risk averse adults with skills for entry and targeting are a thing. everyone has a mobile phone.
> Most of us aren't being pursued by stalkers or assassins.
Most of us, but for those that are...
However, in the world we live in today, the various LEOs are using this type of data to find people they do not like. It's getting to the point that I pine for the days of good ol' 1985 where you could just be another anonymous person in public with no tracking of your every move.
To be fair it is not the city/elected officials who wants to retain the parking lots. The downtown redevelopment would probably make the city a lot of money.
It is the businesses around downtown who are pushing the save downtown campaign. I imagine the businesses contribute a fair chunk of revenue to the city now and have some influence .
Relative to say parts of Redwood City, or Palo Alto. Menlo park has a fair amount of student-ish 4 Unit lots, so it not all zoned SFU.
TBF a lot of the complaints are coming from businesses that are _probably_ renting. There is absolutely the chance that their business will go under due to construction disruptions before they can benefit from the increased foot traffic once the development is complete.
And, of course, once the development is complete, and the value of their land goes up, so too does their rent....
Menlo Park today has free and ample parking downtown. RWC is paid parking anywhere within few blocks of downtown, all the garages are paid, the garage on Jefferson Av charges more on Sundays. Same thing in San Mateo downtown.
Size of one heart has restrictions that are determined by diminishing return of physics. That doesn't mean engineering a larger system is impossible or even that very difficult. Same as any other pump system. i.e. there is no reason not to have 2 or 10 hearts.
We do this to move any fluid like water or concrete up to steep terrain or maintain pressure in everything from sewage to oil or gas pipes over long enough distribution systems.
Romanticizing in popular culture not withstanding, heart is just a pump[2] and today can be replaced by (albeit for short duration) entirely by a machine or replaced in a transplant.
We are not talking about say the brain or the central nervous systems[1]. That would be like going to multi-master from single node - lot more fundamental complex rebuild and rethink of the core architecture.
[1]We are not even remotely close to fully understanding let alone attempting to replace.
[2 Amazingly well designed, very efficient, something today we probably could not (yet) build synthetically with similar reliability and durability but it is still a pump nonetheless.
> We are not talking about say the brain or the central nervous systems. That would be like going to multi-master from single node - lot more fundamental complex rebuild and rethink of the core architecture.
The central nervous system already is “multi-core”, with tiny logic handling such things as the patellar reflex. https://en.wikipedia.org/wiki/Patellar_reflex#Mechanism: “This produces a signal which travels back to the spinal cord and synapses (without interneurons) at the level of L3 or L4 in the spinal cord, completely independent of higher centres”
It is not limited to graphics, better packaged products, better dressed / good looking well spoken person and so on. Celebrity endorsements depend on this thesis.
There has always been a bias towards form over function.
Both will do public reporting only when they IPO[4] and have regulatory requirement to do so every quarter. For private companies[1] reporting to investors there are no fixed rules really[3]
Even for public companies, there is fair amount of leeway on how GAAP[2]expects recognize revenue. The two ways you highlight is how you account for GMV- Gross Merchandise Value.
The operating margin becomes very less so multiples on absolute revenue gets impacted when you consider GMV as revenue.
For example if you consider GMV in revenue then AMZN only trades at ~3x ($2.25T/$~800B )to say MSFT($2.75T/$300B) and GOOG ($3.4T/$400B) who both trade at 9x their revenue.
While roughly similar in maturity, size, growth potential and even large overlap of directly competing businesses, there is huge (3x / 9x) difference because AMZN's number includes with GMV in retail that GOOG and MSFT do not have in same size in theirs.
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[1] There are still a lot of rules reporting to IRS and other government entities, but that information we (and news media) get is from investors not leaks from government reporting - which would be typically be private and illegal to disclose to public.
[2] And the Big 4 who sign off on the audit for companies prefer to account for it.
[3] As long as it is not explicit fraud or cooking the books, i.e. they are transparent about their methods.
[4] Strictly this would be covered in the prospectus(S-1) few weeks before going public and that is first real look we get into the details.
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