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Not just startups are affected. I have feeling that economy (or maybe just spending?) has contracted by approximately 10%, coupled with an additional 10% infla
by tlogan 3y ago
Not just startups are affected.
I have feeling that economy (or maybe just spending?) has contracted by approximately 10%, coupled with an additional 10% inflation rate.
So a typical small business in the technology sector might experience a reduction in revenue of about 10%, while simultaneously facing a 10% increase in operating costs.
- anonymouskimmer 3y agoWhich economy are you feeling this about, and what is your feeling based on? Is this just the "technology sector" economy that you're feeling this about? Because the linked article is about the broader startup economy (though seems to be mainly about VC-funded startups?). And a 10% contraction would dramatically hit employment (companies, on average, don't have access to that much money to pay employees if revenue decreases 10%).
- gruez 3y agoA 10% drop is huge. Even in the GFC the peak to trough drop for GDP and personal expenditures were only 4.82% and 2.58% respectively. https://fred.stlouisfed.org/series/PCEC96 https://fred.stlouisfed.org/series/PCEC96 https://fred.stlouisfed.org/series/A939RX0Q048SBEA https://fred.stlouisfed.org/series/A939RX0Q048SBEA
- tlogan 3y agoI just have a feeling - there were so many companies reporting that. FedEx revenue dropped 10%. Dell revenue dropped 10%. Union Pacific revenue dropped 10%. Foot Locker revenue dropped 10%. Cisco sales are 10% down. Maybe because I was following these companies …
- anonymouskimmer 3y agoFedEx & UPS: Amazon delivery is up, which means they use FedEx and UPS less. I noticed on the Macrotrends report for Union Pacific that the decrease is only in the last two quarter's results, and follows back to back yearly increases of 11.63% and 14.08%. The longer chart shows UP is subject to cyclical ups and downs since at least 2012. https://www.macrotrends.net/stocks/charts/UNP/union-pacific/revenue https://www.macrotrends.net/stocks/charts/UNP/union-pacific/... For Cisco I noticed you switched from revenue to sales. The most recent quarter's revenue results show an 8% year-over-year increase. https://newsroom.cisco.com/c/r/newsroom/en/us/a/y2023/m11/cisco-reports-first-quarter-earnings.html https://newsroom.cisco.com/c/r/newsroom/en/us/a/y2023/m11/ci...
- pasttense01 3y agoFedEx quit doing business with Amazon several years ago: Behind FedEx’s Strategic Decision to Leave Amazon at the Curb https://fortune.com/2019/08/07/fedex-amazon-deliveries/ https://fortune.com/2019/08/07/fedex-amazon-deliveries/
- anonymouskimmer 3y agoOkay, then Amazon delivery being up means that consumers prompt less use of FedEx.
- konschubert 3y agoVibecession. In fact, the US Economy grew more than 5% year-over-year
- anonymouskimmer 3y agoThat personal expenditures chart shows a >15% drop peak-to-trough.
- gruez 3y agoYou seem to be talking about the pandemic drop (2020), whereas I was talking about the GFC drop (2008).
- anonymouskimmer 3y agoSorry, you're right. I didn't look at the axis and reflexively assumed it was a time series of the appropriate era.