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Why is that? What does not being FAANG have to do with it? Are we talking about older public software companies like Oracle, Adobe, Microsoft, etc, or are we t

• danielmarkbruce 5y ago
  Because people are selling...To me it seems that the FAANG stocks weren't actually overpriced. Many of the other software companies seemed overpriced to me. But any strong sounding narrative as to why is going to be.. incomplete. Someone else will say inflation and interest rates. Someone else will say something else. All you know is people are selling. It's pretty much across the board... Salesforce, Veeva, Datadog, Blend, New Relic, Okta, Zoom, ServiceNow, Twilio, Atlassian, Docusign and on and on and on. Most of them off 40% from the highs.
  • ttunguz 5y ago
    there's been a rotation out of technology because of the prospect of interest rates going up. because most technology companies don't generate earnings (profits) for many years, and because many investors use DCF (discounted cash flow calculations) to value a company. the greater the interest rate, the lower the value for these business. that's why it's a broad sell-off.
    • danielmarkbruce 5y ago
      It's a nice, coherent narrative. It sits so nicely in a human brain. It's incomplete. Several companies had big earnings misses. Docusign is the obvious example. Twilio missed. Zoom. Big drops. Anytime you have a really coherent narrative in the stock market, you are missing something.