Tech bubbles are bursting all over the place
economist.com
Tech bubbles are bursting all over the place
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Re: Tech bubbles are bursting all over the place
#2I work for non-tech generating 100million+ in revenue. Cushy job, fully remote, good pay and full autonomy with flexible hours working as an IC.
I recently talked to a startup, similar pay, culture would be a better fit since it was mostly techies and I'm a nerd by nature.....but things just got awkward as soon as I asked about their revenue....they were bleeding money and I was told they were being acquired by a big corp. Also, the tone worried me, the confidence the CEO presented early in the call disappeared.
I also tried digging deeper into their business and what they were selling, as I have interest in that space due to my hobbies. I literally didn't see a need for their startup to exist. But I'm just an average developer what do I know.
Re: Tech bubbles are bursting all over the place
#3Re: Tech bubbles are bursting all over the place
#4Re: Tech bubbles are bursting all over the place
#5And all it took was the Federal Reserve raising the federal funds rate by less than 100 bps after a decade and a half of rock bottom rates.
I have nothing more to add. I'm going to go outside and breathe some fresh air.
Re: Tech bubbles are bursting all over the place
#6A lot of these companies have very reasonable P/E ratios now. Microsoft is sitting at around 27, Apple 25, and Facebook 15.
None of those strike me as "inflated". Those are normal values for the stock market (20-25). Are investors just panicking?
Re: Tech bubbles are bursting all over the place
#7I work for non-tech generating 100million+ in revenue. Cushy job, fully remote, good pay and full autonomy with flexible hours working as an IC. I recently talked to a startup, similar pay, culture would be a better fit since it was mostly techies and I'm a nerd by nature.....but things just got awkward as soon as I asked about their revenue....they were bleeding money and I was told they were being acquired by a big…
Across every investment class there has been a trend of buyers needing to become more financially irresponsible in order to participate in the market.
Need to buy a house? bid 20% more than asking, if you don't - someone else will.. in cash.
Need to build a ride-hailing app? prepare to pay people to ride indefinitely.
Need to own a growth stock? prepare to pay upwards of 100x multiple on revenue.
All around, there have been too many dollars chasing too few assets. I suspect the pendulum is swinging now that housing got to the price point where employees demanded equivalent pay increases to housing cost increases.
Re: Tech bubbles are bursting all over the place
#8I work for non-tech generating 100million+ in revenue. Cushy job, fully remote, good pay and full autonomy with flexible hours working as an IC. I recently talked to a startup, similar pay, culture would be a better fit since it was mostly techies and I'm a nerd by nature.....but things just got awkward as soon as I asked about their revenue....they were bleeding money and I was told they were being acquired by a big…
Same thing happened to me. There's a company in Dallas that had a website that basically presented users who were searching for a product type with a list of products along with their ratings. Apparently they were supposed to make money off of affiliate links. The website was buggy and slow, and also... Google does that already.
So they pivoted, and now they've aimed their engine at CBD reviews or something. I still don't see the point.
Re: Tech bubbles are bursting all over the place
#9A lot of these companies have very reasonable P/E ratios now. Microsoft is sitting at around 27, Apple 25, and Facebook 15. None of those strike me as "inflated". Those are normal values for the stock market (20-25). Are investors just panicking?
Don’t rising interest rates put a downward pressure on p/e as growth (often) requires capital thus loans?
Re: Tech bubbles are bursting all over the place
#10A lot of these companies have very reasonable P/E ratios now. Microsoft is sitting at around 27, Apple 25, and Facebook 15. None of those strike me as "inflated". Those are normal values for the stock market (20-25). Are investors just panicking?
I think there's some panic, yea, but the P/E doesn't tell the whole story. Take Facebook or maybe Google (just to pick on, others like Apple have their own headwinds to face) - how does advertising fair in a recession? Maybe the P/Es have retracted to look appealing, but here in about 2 years when ad revenue is down 30% those same P/Es look expensive.
Personally I think if you are investing with a longer-term horizon the next few years don't matter and if you like to buy individual stocks now is as good of a time as any.
Not a financial advisor and not financial advice.