While many comparisons have been made to the anguish wrought by the burst of the Dot-Com bubble, Catherine explains, the tech sector is far more developed now than it was in the past. Capital was cheap, so losses didn’t matter.” “That’s what their investors wanted to see. “For years, startups generally followed the same playbook, which was grow as fast as possible at whatever the burn rate,” says Matt Kennedy, the senior IPO market strategist at Renaissance Capital, a provider of pre-IPO research and IPO-focused ETFs. It’s enough to remind more seasoned investors of the 2000 Dot-Com Bubble. But tech - along with other high-risk investments like SPACs and cryptocurrencies - has been hit especially hard.Įven tech giants like Facebook, Amazon, Apple, Netflix and Google (the so-called FAANG stocks) are down by double digits, faring worse than the broader market. Virtually every sector, minus energy and utility stocks, is struggling with high inflation, rising interest rates and general gloominess that has economists and analysts speculating about a recession. Bill Gurley, a prominent venture capitalist, summed up the shifting mood in a tweet last month seemingly directed at tech startups who may be in denial: “The cost of capital has changed materially, and if you think things are like they were, then you are headed off a cliff like Thelma and Louise.”.“The safe move is to plan for the worst.” “No one can predict how bad the economy will get, but things don’t look good,” tech startup accelerator Y Combinator warned.“The boom times of the last decade are unambiguously over,” venture capital firm Lightspeed said in a blog post.Companies are laying off staff.Īs my colleague Catherine Thorbecke writes, investors and industry vets have been sounding the alarm for weeks. Tech stocks are now in their worst rout in a decade, starved of the easy money from the Fed’s pandemic-era stimulus program that fueled those companies’ recent highs. Here’s the thing: Big Tech has been barreling toward a reckoning for a few years, but 2022 has accelerated the industry’s reality check. These days it’s more “cut costs and try to survive.” The “move fast and break things” ethos in Silicon Valley isn’t aging well. Median rent for an apartment in Manhattan hit $4,000 a month in May, surging 25% from a year ago, according to a report from brokerage firm Douglas Elliman and Miller Samuel Real Estate Appraisers and Consultants. Rents just a record high in May - the fourth consecutive month of records - as landlords jacked up prices and revoked pandemic-era concessions. The rent is up and our wages are down …Īh, New York City. And there was no word yet from Trump about how quickly he’d order the military to revert to his design if he’s re-elected… The Air Force did not say what the new color scheme would be. In case the state-of-art tech and armada of nuclear-attack-resistant support planes didn’t do enough to scream “THIS IS AMERICA.”īut it turns out the darker blue Trump requested could potentially overheat the sophisticated electronics system that ensures POTUS can stay in secure communication with officials on the ground. He wanted a supposedly more patriotic look, with a red, white and blue palette. Trump didn’t love the AF1 color scheme, with its light blue stripe that’s been there since the Kennedy administration. On top of all of that, there’s a new headache: The paint job that former President Donald Trump ordered is a major liability. Now, Boeing says it may not happen till 2026. The current Air Force One jets were built in 1990, and they were supposed to be replaced by 2025.He told analysts in April that the $3.9 billion deal it inked with the Air Force in 2018 included “a very unique set of risks that Boeing probably shouldn’t have taken.” It’s so bad, Boeing’s CEO says even agreeing to build the planes in the first place was a mistake.That contractor was replaced, further setting back progress. Boeing also had a dispute with a subcontractor that was working on the jets’ interior.(Note: Everything I know about Air Force One is sourced to either Chris or Harrison Ford.) Among other problems, Boeing has had trouble finding enough workers with sufficient security clearance to work on the high-tech military planes, especially when Covid cases caused staffing shortages, my colleague Chris Isidore writes.
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