This is really hyperbolic. Facebook is not even closely comparable to those. Additionally, there's no market indication that won't be a need for services like AWS or hardware provided by Apple.
It's really weird how many people seem to _want_ the tech industry to just wither and die. It's unlikely and unrealistic. There may be a sharp correction, but it's unrealistic to think that the behemoths with a moat are going anywhere.
AWS is healthy. Apple is effectively immortal, but will slowly commoditize (10+ yrs) from lack of innovation.
Meta/Goog are (eng staff wise) oversized for their output. Both of their leaderships aren't leading very well.
Despite the hype and capabilities offered, none of the big players have find ways to use their AI assets. That's a poor indicator of their future. You can almost smell the disruption coming..
good point, other than applications in adtech for google/fb the only big tech company that is actually doing something with their ML expertise is nvidia IMO
No one said anything about tech dying (I said startups), but a repricing for sure.
We don't even know the market demand for these products because cheap money has made everyone a startup founder, and every company pivoted to providing a "tech" solution when it might not have been economically viable or provided any profit.
Oh no the market has corrected to 2019 levels because the ridiculous amount of free cash has stopped! Clearly the era of tech is over and we should all wrap up and go home.
I don't think there is anything substantial here to suggest this is anything other than a normal recession and even if this was like the dotcom bubble, these companies aren't like dotcom era startups. They're massive behemoths intertwined with the fabric of American society, not to mention their warchests make most other companies blush.
2005 was a pretty shitty time to be in software. I could do without another one of those. If we avoid that level of suck for another 10 years I can just take early retirement.
Tech is much more integral to our lives than ever. I think what we might see instead is earning decreasing to a certain extent though. Non-FAANG type of companies still need plenty of tech; and they tend to pay decent enough.
> I don't think there is anything substantial here to suggest this is anything other than a normal recession
Then I'm guessing you haven't been paying much attention to anything.
Have you seen what's happening in the bond market these days? Looked at the insane actions the BoE is taking coupled with their insane tax policy? Have you seen the rising dollar are you aware the threat that makes to the entire global credit system?
I don’t know that I’m particularly concerned about the UK causing a global economic crisis. I am aware of what’s happening with them, I’m currently vacationing in Ireland so it’s been on the news but I just don’t know that the UK will be anything to cause larger global consequence.
I was not aware of the US bond market crumbling, and having a quick read it doesn’t seem to be, it seems to be a consequence of the fed raising rates which will obviously not continue indefinitely.
To be honest it still seems like a normal recession but with a bunch of hyperbolic news headlines attached.
The downvote arrow as slowly become a "truths I don't want to hear" button on HN.
Too much cheap money and a grow at any costs mentality has lead to exactly this is problem where every tech company is very tightly coupled with every other tech company.
I'm in the B2B space for one of the many non-profitable, recently IPO'd companies. As far as companies goes, this one is pretty sane. Healthy growth, a product that makes sense, thoughtful leadership. However when I look at our customers the vast majority are small tech startups, many of which will obviously cease to exist in a down turn.
When I look at our spending, it's mostly to other larger tech companies, those big tech companies everyone wants to work for.
But those small startups, that have weird products that don't make sense, price sensitive customers, unsustainable growth and crazy leadership, they make up a huge amount of our revenue. When they start to collapse, we'll have to downsize, both in headcount and in services we pay for. And we won't be alone.
On top of that, I look at my own spending. My other tech friends and I have no problem paying what would have been crazy amounts for services like Door Dash, or a constant stream of slightly over price but so convenient stuff from Amazon. Why not subscribe to another streaming services, it's only $10/month. So many of these direct to consumer companies mostly exist because of highly paid techworkers that have more cash than they need.
I get laid off I'll just pick up my food myself, I'm not going to be ordering everything of Amazon, I'm cancelling all but my most active subscriptions.
There are a lot of positive feedbacks in the current tech ecosystem what will continue to be triggered and continue to bring down the massive, massive tech bubble we're in.
Granted, we will all have trim the fat moment but I doubt the level of doom and gloom is warranted, as we are not in a "massive, massive tech bubble". If anything, tech hasn't penetrated enough into our lives yet.
Most likely; these services will evolve into a format where it is financially more viable - which might even allow them to reach larger audiences.
Ideally, this should happen in a slow fashion (which it seems to be happening). A sudden crash would be more chaotic, but on the long term I doubt we have much to worry about as a sector; there'll still be plenty of jobs for tech workers.
Think about all the startups who rely on AWS, Apple computers, and Facebook ads. What happens when they all die?
The tech bull run is over, and we'll find out where the bodies lie soon.