Observations on Tech Industry Market Conditions
There’s been a lot of chatter lately that market conditions may be taking a turn south.
And my sources are mostly in the tech industry too. But I’m sure others in other industries are saying much the same. So what is happening in the tech industry now and what could possibly happen going forward?
Some disclaimers: these are all personal opinions, observations and comments from my perspective. Definitely do your own research.
First of all Meta, Amazon and Netflix reporting lower revenue, hiring freezes and layoffs.
These massive companies make headlines when they do anything so it’s not surprising that they’re all over the news.
Meta makes nearly all of its money from advertisement so lower revenue we would assume also means that businesses in the markets that Meta operates in are spending less on marketing. It also doesn’t help that Apple capped Meta at the knees with changes to tracking. This could be a leading indicator or it could also mean and pullback from covid peaks or businesses suffering from supply chain issues and thus advertising less because of less inventory or less cashflow.
VCs sending out doom and gloom presentations and memos.
On the other side of the tech industry, you have startups feeling the heat a bit faster. With funding drying up, startups seem to be having to find ways to extend their runway a little further out. A lot of this is happening in the US but I’ve come across 2 startup founders here in Australia saying the same.
Aussie tech market.
While there’s only been one instance of layoffs that I’ve been familiar with here, recruiters are saying that the super hot dev market is cooling down a bit. All the developers from the company I saw do layoffs all had jobs literally the next day so it seems like demand for developer is still outstripping supply.
I think now is a good time to be in well funded companies and robust industries. But if people really are staying at home more because of the crazy fuel prices or tighter budgets, they’re probably going to be using their phones and computers.
These are some of the observations I have about the tech market right now. What do you think? How do you think tech will fare in the coming months?
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