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by H8crilA 2288 days ago
Are you kidding me? Tech is so ridiculously inflated, just look at how many stupid "tech" startups were created recently. This will deleverage now. Not even the "big guys" are so super safe - a lot of VC money is recycled back into "tech" via AWS bills and online ads.

The only worse business right now is probably oil, especially fracking. Those guys are doomed.
3 comments
rvz 2288 days ago
Depends on which "big guys" you are on about. Likely, it's those who have recently IPO'd on VC money and depend on lots of moving parts and huge costs like cloud costs, logistics, travel and are also in specific domains which are waiting to be sherlocked by a FAAMNG company. The best of all:

It is those "tech" startups who generate little revenue and no profit, but take in VC money into their series D,E,F and G+ for years.

Ultimately, it comes to no surprise that layoffs from such startups would happen at this time since my so called "machine learning crystal ball" predicted this [0] anyway whilst ignoring other earlier vacuous predictions. FAAMNG and other profitable companies will survive this.

[0] https://news.ycombinator.com/item?id=21926473

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H8crilA 2288 days ago
When I wrote "big guys" I meant Apple, Microsoft, Facebook, Google, Amazon. And I meant even those aren't safe due to the reasons mentioned in the GP, despite large cash buffers and generally excellent credit.

Many (most?) companies will survive, the question is in what form.

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rvz 2288 days ago
Correct. No-one's completely safe. But those companies you mention that are made up of the FAAMNG including Netflix are powering the majority of the internet services such as (AWS, GCP, Azure, Facebook Ads and Apple Services) which are used by many developers and startups. For some of them, this isn't even their main source of revenue generation.

It's the unsustainable VC funded, near-zero revenue, rapid growth and high costs burn rate so called 'tech' startups which some have IPO'd or some are still raising capital with no plan for a profit that will not survive.

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heedlessly3 2287 days ago
You are completely wrong. Tech is definitely not worst industry affected by the corona virus by a long shot. Service workers are definitely not a job that can be done at home. Tech workers usually have good salaries while service workers are likely to live paycheck to paycheck. Plus they do not have the same access to medical benefits.
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2019-nCoV 2288 days ago
The cruise ship industry would like a word with you.
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H8crilA 2288 days ago
There's a few more small sectors like this. But I was thinking of the "official" s&p sectors:

https://www.tradingview.com/markets/indices/quotes-snp/

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