Logically Answered

When Milking Fees Backfires...Why Millions Are Deleting PayPal

Logically Answered is centered around explaining the economics of tech and social media. These sectors are generally analyzed through the lenses of finance and economics to determine which industries and companies will thrive and which will fall. In addition to this analysis, the content is often focused on the stories of various famous entrepreneurs such as Elon Musk, Steve Jobs, and Jeff Bezos. Logically Answered also cover the rise and fall of several interesting companies and services that we come across on a day-to-day basis. There have been so many companies that have risen to fame and then died out in a single generation. The most interesting companies are the ones that were able to save themselves and avoid bankruptcy. Feel free to follow the podcast if you would like to see any of these topics Logically Answered.

Find Logically Answered on YouTube: https://www.youtube.com/@LogicallyAnswered/

Disclaimer: This podcast is an independently created audio adaptation of content originally published by Logically Answered. This is a fan made podcast that appreciates the channel’s insightful approach to knowledge and aims to make it accessible to those who prefer listening over watching. This podcast is not affiliated with, endorsed by, or officially connected to Logically Answered in any way. All rights to the original content belong to Logically Answered. If you have any concerns, please reach out.

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The Time Google Ditched China Just To Come Crawling Back

In 2010, Google shocked the world by ditching China. They had made their stance on Chinese censorship clear by redirecting all Chinese traffic to a Hong Kong version of Google that lacked any sort of censorship. They would follow this up by banning Google, Gmail, Chrome, and YouTube completely in China. While Google was praised by the Western media for fighting censorship, it didn’t seem like China really cared about Google leaving. They had already stolen much of their source code and were able to create similar services in house which would not only give them more control but also more profit. Despite this, Larry Page insisted on never returning to China unless they changed their policies on censorship. All of this changed when Sundar Pichai took over though. From the very beginning, Sundar had a soft spot for China as he would publicly defend the idea of returning to China. He would start off by just launching developer tools in China, but this would eventually lead to Google allegedly creating a fullon surveillance tool for China called Project Dragonfly. This video tells the dramatic story of Google exiting China only to come crawling back years later.

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Why Engineers Are So Worried About This Acquisition

Have you ever heard of a company called VMware? They were just recently acquired by Broadcom for a whopping $69 billion. For any founder, this would be a dream to sell for such a large price tag, but engineers are actually extremely worried about this acquisition. In fact, much of the internet seems to think that VMware is already dead and that it’s time to start looking for alternatives. Why you ask? Well, Broadcom has made its intent with VMware extremely clear. They’re looking to milk VMware for everything they’ve got by turning the company into one massive subscription model and forcing all their customers to switch to the subscription model. This video explains the rise and importance of VMware and why engineers are so worried about this acquisition.

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Anti Big Tech Companies Are Already Failing

Over the past several years, we’ve seen a new segment within the tech industry thriving: the antibig tech industry. The main purpose of most of these companies is to fix the mistakes of juggernauts like Google and Facebook. For example, ProtonMail doesn’t collect any personal data or browse through your emails. Similarly, Signal is an endtoend encrypted messaging service that’s meant to take on WhatsApp. But, while these apps have seen a strong start, it doesn’t appear that they will be able to take on offerings from big tech companies. One of the main reasons for this is that most people simply switch to these apps due to some external event whether it be an Elon Musk tweet or a monumental event like the GameStop short squeeze. But, as these events become a memory of the past, people tend to shift back to big tech offerings. Another massive challenge holding back these antibig tech companies is that it’s extraordinarily hard for them to make money while eliminating all of the profitable aspects of big tech. This video explains why antibig tech companies like BeReal are already losing substantial portions of their user base and are failing.

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What Happened To Samsung?

Samsung isn’t doing great. In fact, their operating profit has just plummeted an eyewatering 95% over the past year. It’s easy to blame the recession and high inflation for this trend but there seem to be bigger core factors at play. You see, Samsung has worked itself into a rather tricky situation within the chip market. They’ve been able to become the world’s largest memory chip producer but getting to this position was not easy. To maintain this lead, they constantly have to invest massive amounts of money to stay ahead of the competition because raw superiority and price are the main factors that count in this background field. These high levels of investment have been especially hard to maintain with volatile memory chip prices and the aftermath of the global chip shortage. Combine this with the era of peak smartphones, and things aren’t looking that great for Samsung. This video explains Samsung’s struggle to remain profitable in the era of peak smartphones.

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How Reddit Is Being Exploited For AI Training (& Left With Pennies)

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Newegg Is Going Bankrupt?

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Why Companies Are Blowing Their Cash Reserves

Companies have been blowing their cash reserves. At first glance, it’s easy to assume that this is just because companies are trying to protect against high inflation but there’s actually a much more deeprooted reason. In fact, many of the top companies have been reducing their cash reserves well before inflation took hold. It turns out that holding too much cash is an ominous sign for companies. Studies have shown that there is an inverse correlation between cash reserves and stock performance. This makes sense as companies with large cash reserves have simply run out of places to put their money, so they have turned to hoarding cash, buying bonds, and buying back stock. This was historically the main reason that companies tended to avoid large cash reserves but recently, there has been yet another reason. You see, the best currency to hold is no longer cash or gold or oil or equity. The best currency to hold is actually the attention of people. This is the primary currency that every big tech company is fighting for and they’re more than happy to convert their cash reserves to buyout attention. This video explains why companies are blowing their cash reserves and where they’re putting their cash instead.

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Platforms Are Already Giving Up On Short Form Content

Companies are already giving up on shortform content and pivoting back to their main sources of revenue whether that be the Instagram feed or longform video. This may seem confusing at first glance as the media would have you believe that everyone’s attention span is shrinking and that shortform content is the future, but this is really not true. First of all, most creators use shortform content as a springboard for longform content, music videos, etc. So, shortform content falls short when it comes to building up a loyal base of creators. Additionally, advertisers aren’t exactly enthusiastic when it comes to advertising on shortform content. In fact, based on ad rates, they're 100X less willing to push ads on shorts. And finally, as for the audience, just because shortform content is popular doesn’t mean that the interest in longform content is dying. In fact, it’s likely that they coexist and finds some sort of stable equilibrium. This video explains the various reasons companies are pivoting back to their main sources of revenue and pulling back on shortform content.

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From Gaming to Hot TubsWhat Happened To Twitch?

Twitch has devolved from being a platform for gamers to being a platform for lust and mature content. At first, Twitch tried to fight against this trend by banning streamers who pushed the boundaries and tarnished the wholesome reputation of the platform. But, over time, Twitch has become more and more open to risque content mostly because it is not only lucrative for the platform but it has the ability to help the platform continue growing. You see, at the core, Amazon is a growth company and anything that isn’t growing is deemed a failure. Since the pandemic boom, Twitch hasn’t been growing. In fact, they’ve been shrinking which has no doubt put off executives at the company, pushing them to test the boundaries themselves. This trend has only been accelerated by other platforms like TikTok and Instagram that have been pushing risque content themselves. This video explains the downfall of Twitch from a gaming platform to an NSFW platform.

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