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Over last 6 months, NASDAQ is down ~28%, S&P 500 is down ~15%. Its not just tech stocks. Typical knee-jerk reactions by publicly traded companies is to restric
by mattbrewsbytes 4y ago
Over last 6 months, NASDAQ is down ~28%, S&P 500 is down ~15%. Its not just tech stocks.
Typical knee-jerk reactions by publicly traded companies is to restrict hiring, restrict admin spending and possibly have layoffs. There are some companies posting positive quarterly results and their stock still moves down so this downturn isn't really something a company can do anything about. If employees are sitting on a bunch of grants/options there is a chance they might be worthless depending on how they're awarded.
I suspect the few trillion dollars pumped into the economy the last couple years is catching up with itself. At end of Q2 if GDP is down/slowed then I think someone will use whatever official wording they use for downfall/recession/slump/correction. And people will go "gee really?!?"
- Kalanos 4y agoyeah it's dragging everything down. Okta's YOY revenue increased 50%, but it dropped from $240 to $85
- s1artibartfast 4y agoOkta would need 2 billion annual profit to justify $240 with a PE of 20. Total revenue today is 1.3 billion, with a profit margin of -60% which is getting worse and not better. Can they 20x their revenue and cut costs by 50%?
- moralestapia 4y ago>Can they 20x their revenue and cut costs by 50%? Nope, their own MAUs plateaued already.
- Kalanos 4y agowhy do they need 25B in revenue?
- Kalanos 4y agoall they need to do is figure out how to cut costs. assuming that customer acquisition cost was a main driver then that should be easy
- s1artibartfast 4y agoNo, $1.3 billion revenue is not enough to support a $240 price even if they cut 99% of costs.