Eric Siu argues that layoffs have become a marketing tactic. Companies like AXTI, Intel, Marvel Technologies, and Vertiv use them to manage market narratives rather than fix real problems. Stock moves are driven by perception, not by actual revenue or cash-flow growth.
If you look at the stocks, like, AXTI is up 6,800%, okay? And then Intel's up 500%, Marvel Technologies 243%, Vertiv, which does cooling, is up 188%. And so speaking of narrative, Neil, AXTI, it's not like they're crushing it from like a revenue growth standpoint or cash flow growth standpoint. It's the narrative that's tied to this. And when your stock price goes down, you need to figure out how to make your economics look better for the market, and you got to paint a narrative. It's marketing. They're just spinning the verbiage and the messaging to make themselves look better. The real reason that most of these companies are laying off is because they're just not growing the way they expected, so now they gotta cut back.
