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It's cooling off. Zombie companies are going to have trouble continuing as rates rise.
by jollyllama 4y ago
It's cooling off. Zombie companies are going to have trouble continuing as rates rise.
- jejeyyy77 4y agopeople have been saying this for 2 decades. I'll believe it when I see it.
- wollsmoth 4y agorates haven't been rising for two decades.
- jejeyyy77 4y agothere's been a new reason for why "this time is different" for the past 2 decades.
- wollsmoth 4y agoI mean a number of tech companies are declining in value. What would you need to see happen to consider them "in trouble"? More layoffs?
- Apocryphon 4y agoThe boom of the past two decades was fueled by low interest rates!
- jejeyyy77 4y agoand before that it was the other thing. As I said, I'll believe it when I see it ;)
- Apocryphon 4y agoYou're about to. https://news.ycombinator.com/item?id=32928803 https://news.ycombinator.com/item?id=32928803
- jejeyyy77 4y ago
- newaccount2021 4y ago
- tempsy 4y agoYou haven’t noticed a bunch of multi bil tech cos down 90% in less than a year? Carvana is the poster child of zombie tech co that only made sense in a zero rate environment. Many others like it.
- walthamstow 4y agoI see your Carvana and raise you a Klarna
- jszymborski 4y agoI must be pretty out of the loop because these sound like new Pokemon names.
- jollyllama 4y agoWell, there was at least one significant downturn during that time. Raising rates are causing problems. This isn't an apocalyptic prediction.
- karmasimida 4y agoWell you can always test the market, it won't hurt anyway.
- lumost 4y agoThis. There are more than a few companies where their burn rate + valuation make it impossible to do anything except go full steam ahead. If you lose a billion dollars a year on 500 MM in revenue with 2 billion in the bank and cost of goods sold of 600 MM /yr what else can you do? Hopefully you'll continue growing and get to the point where cutting costs leaves a viable business.