One thing you have to remember is that Tech in particular is subject to boom/bust outside of the stalwarts like Microsoft/Apple/Google/Amazon
Many of those companies grow at exponential rates, and in many cases unsustainably. WeWork is a great example of this as well. Too many start-ups and traditional companies have an aversion to running lean. They think it makes them look unsuccessful/don't have growth. And in the cases of Social Media platforms like Meta there's a big conversation around disinformation and advertising that's causing people to not spend their money on the platform for good or ill.
In the case of Intel, the US just announced that they are freezing chips and semiconductor R&D AND manufacturing in China. China is Intel's biggest market for semiconductors and chips. So if China can't make them at the rate they did, they can't sell them at the rate they did. So they take a hit as well.
Other industries don't have these kinds of issues. Travel/Hospitality are banging right now.
There's going to be a downturn, will it be like 08? No. Too many markets, and people's HOMES aren't in danger like they were then. But Tech is a weird indicator for the economy. I remember the .com bubble bursting and while that hit Wall Street, the average person was (relatively) unaffected.
Many of those companies grow at exponential rates, and in many cases unsustainably. WeWork is a great example of this as well. Too many start-ups and traditional companies have an aversion to running lean. They think it makes them look unsuccessful/don't have growth. And in the cases of Social Media platforms like Meta there's a big conversation around disinformation and advertising that's causing people to not spend their money on the platform for good or ill.
In the case of Intel, the US just announced that they are freezing chips and semiconductor R&D AND manufacturing in China. China is Intel's biggest market for semiconductors and chips. So if China can't make them at the rate they did, they can't sell them at the rate they did. So they take a hit as well.
Other industries don't have these kinds of issues. Travel/Hospitality are banging right now.
There's going to be a downturn, will it be like 08? No. Too many markets, and people's HOMES aren't in danger like they were then. But Tech is a weird indicator for the economy. I remember the .com bubble bursting and while that hit Wall Street, the average person was (relatively) unaffected.
