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You're only listing consumer product tech. There are other tech industries out there with plenty of room to make money. Also question: Why would high interest
by 1270018080 5y ago
You're only listing consumer product tech. There are other tech industries out there with plenty of room to make money.
Also question: Why would high interest rates expose Uber etc?
- ehnto 5y agoI don't think you need anything to expose Uber, I can't believe they still run at all. 20billion in loss and no end in sight, they've failed to create a moat and they've failed to dethrone the taxi industry.
- deleted 5y ago[deleted]
- c0balt 5y agoUber afaik runs at a relative high loss at the moment. You'll find a bunch of articles on this topic by searching for their last quarters report. As far as I understandincrease in interest rates could make them running at a profit hard/ very unlikely in the future because covering high-interest loans will become hard. Further, it potentially could limit their cashflow, which impacts growth etc. Many other factors, such as new investemnts or a decrease in individual travel, could influence this too of course. Though for a growth-centric company a limit on credit seems to be one of the harshest limitations.
- weatherlite 5y agoAlso, high interest rate means investors can invest by buying bonds (and earning the interest) instead of investing in high risk growth companies. It's basically bad for stocks in general and particularly for growth stocks.
- lordnacho 5y agoThe higher interest rates are, the more income in the future is discounted. If you assign any income to them in the future you need to assign less, but their costs are immediate.