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Tech companies had a bubble when COVID 19 was first talked about. People stayed at home and used social networks. Now that COVID 19 is under control, the bubble
by orionblastar 4y ago
Tech companies had a bubble when COVID 19 was first talked about. People stayed at home and used social networks. Now that COVID 19 is under control, the bubble burst and layoffs happened because people went back to work and stopped using social networks. Thus less advertising income. Less income means layoffs.
- dehrmann 4y agoIt's interesting that our layoffs were just delayed 2.5 years, though out of overinvestment rather than necessity. One fear for the broader economy is that there's a lot of money that wasn't made in tech this year that was made last year. Not just layoffs, but a drop in RSU values. When essential workers were laid off in the spring of 2020, it was easier to absorb the economic hit and provide government support because they didn't make that much. Now we have tech workers cutting back massively on discretionary spending after seeing their TC drop by 25% (or 100%). Normally I'd ask where tech workers spend their money and try to short that, but the main answers I have are housing and Teslas.
- vineyardmike 4y agoI think the real answer is more pedestrian. High income people largely spend in the same places, they just spend more. They still buy clothes, but maybe at Nordstrom instead of TJMax. They still take vacations, but maybe they upgrade to economy+ and get the hotel room With a view. They buy groceries, but maybe shop organic and get real cheese instead of Kraft.