The current narrative explaining why tech stocks are getting hammered

This morning the tech-heavy Nasdaq Composite index is off 2.34% after falling yesterday. Shares of Tesla are off more than 6% today, now mired in a bear-market correction after reaching new all-time highs earlier this year. Apple stock is worth $ 122.02 per share, down from its recent highs of more than $ 145.

After a long period of time when it felt like tech stocks only went up, the recent correction is starting to feel material.

There are other ways to measure the selloff. Bessemer’s cloud index is off 4.5% today, after falling over 5% yesterday. And the now-infamous $ ARKK, or ARK Innovation ETF that many investors have used as a proxy for growthy tech stocks, is off 6.6% today after falling 5.9% yesterday.

Hell, even bitcoin has taken a pounding in the last few days, after its recent, relentless rise.

What’s driving the rapid turnaround in the value of tech companies, tech-focused indices and tech-adjacents, like cryptocurrencies? Not merely one thing, of course, in an environment as complex as the world’s capital markets. But there is a rising narrative that you should consider.

Namely that the money-is-cheap-and-bond-yield-is-garbage-so-everyone-is-putting-money-into-stocks trade is losing steam. As some yields rise, bonds are become more attractive bets. And as COVID-19 vaccines roll out, some investors are pushing their stock-market bets into categories other than tech.

The result is that the landscape of value is shifting; the winds that were at the back of every tech company are receding, at least for now. If the changed weather persists until the very investment climate that tech stocks exist in reaches a new equilibrium, we could see the appetite for tech IPOs lessen, late-stage private valuations for startup shares dip, and more.

Here’s CNBC from earlier today on what’s changing:

Stocks dropped again on Tuesday as tech shares continued to tumble in the face of higher interest rates and a rotation into stocks more linked to the economic comeback.

Here’s The Wall Street Journal on the same theme, from yesterday:

The lift in yields largely reflects investor expectations of a strong economic recovery. However, the collateral damage could include higher borrowing costs for businesses, more options for investors who had seen few alternatives to stocks and less favorable valuation models for some hot technology shares, investors and analysts said.

And here’s Barrons from this morning, noting that what we’re seeing at home is not merely a U.S. issue:

While members of the NYSE FANG+ index including Tesla, Facebook and Apple have dropped sharply as the yield on the 10-year Treasury has climbed, the sector also is on the retreat overseas.

The market could snap back. Or not. It’s worth watching stocks for the next few days.

Startups – TechCrunch

Hybrid PC Market Analysis, Share, Size Global Current and Future Plans ,Regional Trend, Future Growth, Leading Players Updates, Industry Demand by Forecast to 2027 – SoccerNurds

Hybrid PC Market Analysis, Share, Size Global Current and Future Plans ,Regional Trend, Future Growth, Leading Players Updates, Industry Demand by Forecast to 2027  SoccerNurds
“nigeria startups when:7d” – Google News

Do I risk telling my current CTO I plan to start a company?

tl;dr: good relationship with now acquired company founder. Should I risk a heads up on my plans to start my own company in order to (1) gain more early experience, (2) build my network, and (3) ask for a more tax favorable equity exercise?

I was an early employee at a robotics startup. I've had a good relationship with our CTO/one of the founders and he always said that no matter what I end up doing he would support me.

• We were acquired 1.5 years ago for a hefty buyout, and it's allowed me to expedite my own startup plans. I've been there for 3.5 years with a 4 year equity payout schedule.

• I've been nonstop building my company in my free time <researching market/ building decks/ networking/ roadmapping/ hiring contractors, etc> and am planning to kick off hard around the end of the fall/early '22.

• During covid we haven't talked much lately, but he's said a few times in the past that he thinks I'll be a superstar, though a potentially irrational fear is that it's a positivity bias towards supporting women in STEM.

So I am debating telling him my plans early. He's been a successful exec in the past as well so he could offer some invaluable experience if I had the chance to shadow him for a few months. He could also put me in touch with some angel investors/industry professionals, and building that rapport early could be massively valuable.

Also, even though my equity vests soon, there would be a massive tax hit once I exercise it on termination. I don't know if execs have the potential to help with that, but some extension or tweaking could allow a massive savings on the order of a couple hundred thousand dollars.

submitted by /u/cant_kall
[link] [comments]
Startups – Rapid Growth and Innovation is in Our Very Nature!

Airtel Africa to focus on current markets, will not bid for licences in Ethiopia: CEO – ETTelecom.com

Airtel Africa to focus on current markets, will not bid for licences in Ethiopia: CEO  ETTelecom.com
“nigeria startups when:7d” – Google News

PC Website Builders Market By Current Industry Status, Growth Opportunities – Global Review 2021 to 2028 – National Gridiron League – National Gridiron League

PC Website Builders Market By Current Industry Status, Growth Opportunities – Global Review 2021 to 2028 – National Gridiron League  National Gridiron League
“nigeria startups when:7d” – Google News

Medical Repair Scaffolds Market By Current Industry Status, Growth Opportunities – Global Review 2021 to 2028 – National Gridiron League

Medical Repair Scaffolds Market By Current Industry Status, Growth Opportunities – Global Review 2021 to 2028  National Gridiron League
“nigeria startups when:7d” – Google News

Non-woven Table Linen Market By Current Industry Status, Growth Opportunities – Global Review 2021 to 2028 – National Gridiron League

Non-woven Table Linen Market By Current Industry Status, Growth Opportunities – Global Review 2021 to 2028  National Gridiron League
“nigeria startups when:7d” – Google News

Dress Shirts Fabric Market By Current Industry Status, Growth Opportunities – Global Review 2021 to 2028 – National Gridiron League

Dress Shirts Fabric Market By Current Industry Status, Growth Opportunities – Global Review 2021 to 2028  National Gridiron League
“nigeria startups when:7d” – Google News

Customer Experience (CX) Journey Mapping Tools Market By Current Industry Status, Growth Opportunities – Global Review 2021 to 2028 – National Gridiron League – National Gridiron League

Customer Experience (CX) Journey Mapping Tools Market By Current Industry Status, Growth Opportunities – Global Review 2021 to 2028 – National Gridiron League  National Gridiron League
“nigeria startups when:7d” – Google News

Pure Wool Market By Current Industry Status, Growth Opportunities – Global Review 2021 to 2028 – National Gridiron League

Pure Wool Market By Current Industry Status, Growth Opportunities – Global Review 2021 to 2028  National Gridiron League
“nigeria startups when:7d” – Google News