Sure, if you're working at Google in 2000, you're fine. However, cash flow isn't enough, and a lot of tech is very cyclical. If a business has already hired to

Sure, if you're working at Google in 2000, you're fine. However, cash flow isn't enough, and a lot of tech is very cyclical. If a business has already hired to sustain growth which doesn't appear, they will lay people off. Advertising is leveraged on the state of the economy, and in a contraction will shrink more than goods sales, so a company relying on it will lay people off or have some very ugly financials. If software is licensed by head or usage and all your customers are shrinking, your revenue will be directly impacted. It's very hard to forecast these effects, but so much of tech revenue is fueled by advertising, consumer discretionary spending, and venture capital [1] that assuming a business cycle contraction is irrelevant strikes me as incredibly foolish. A fantastic and profitable business over the long term can be affected by macroeconomic effects. 1. Bridgewater estimates 10% of AMZN/GOOG/FB revenue, 44 billion/year, comes from startups. Startup revenue from other startups will likely be much higher on average.