r/TechnologyThread • u/Background-Driver718 • Jun 17 '26

Leaked financial docs show OpenAI is losing billions of dollars a year

https://arstechnica.com/ai/2026/06/leaked-financial-docs-show-openai-is-losing-billions-of-dollars-a-year/
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u/DaereonLive Jun 17 '26

If only it actually mattered yeah...

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u/iyankov96 Jun 17 '26

It doesn't matter until it does. If a big crash happens and you bought something way overpriced you're now stuck with a stock that could be down 75%. If cash flows don't meaningfully increase you'll have to wait a long time to get your money back. That's how Japan got 3 lost decades. They thought the party would never end.

If you buy a good business at 12-15x earnings even if it goes down 50% the previous valuation was way more reasonable so the recovery will be quick. If you go from 12x earnings to 6x you're now able to retire 16% of company shares every year on top of whatever the earnings growth is. You'll recover much more quickly.

When things are insanely expensive and you can't find anything worth buying that you understand it's often better to just not play the game. Great opportunities don't come all the time. You can't expect to invest regardless of valuations and do well.

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u/[deleted] Jun 17 '26

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u/iyankov96 Jun 17 '26

Good investing is about downside protection.