FO° Exclusive: Why Tech Collapsed and What Happens Now

In November, tech stocks collapsed. Companies fired thousands of employees and CEOs who flew too close to the sun fell down to earth. This happened because of hubris and bad decisions. A new reality is about to emerge.

Tech stocks have soared for many years. Until recently, their CEOs had god-like status. The extraordinary growth of companies like Google, Facebook, Apple, Netflix et al made these CEOs both rich and powerful. They were seen as conjurers of a new age where Google Maps, WhatsApp and YouTube changed people’s habits and lives. Share prices skyrocketed, employees got free meals, even massages, and the laws of economic gravity did not apply.

This month, the gods have fallen to earth. None other than Mark Zuckerberg fired 11,000 employees, about 13% of his company’s workforce. Other tech companies have also been firing employees. The reason is simple: profitability has been decreasing and share prices have been falling.

Financial reports of many tech companies disappointed markets because of a combination of poor investments, bloated expenditure and iffy vanity projects. Zuckerberg’s fixation with the metaverse has not gone well. Neither has Elon Musk’s takeover of Twitter. Sam Bankman-Fried, the celebrated crypto billionaire is now under arrest.

Atul Singh and Glenn Carle make sense of this collapsing tech bubble, analyze the causes for this collapse and examine its potential consequences.

The views expressed in this video/article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy.

FO° Exclusive: Chinese Foreign Minister Is Suddenly and Mysteriously Axed

August 13, 2023

FO° Exclusive: Make Sense of Israel’s New Tumultuous Judicial Reform

August 11, 2023

FO° Talks: Make Sense of the 2023 Spanish Elections

August 10, 2023

FO° Exclusive: Make Sense of the Hellish Rioting in France

August 09, 2023

FO° Talks: Make Sense of Afghanistan With Thomas Barfield: Part 3

July 30, 2023

FO° Talks: Make Sense of Afghanistan With Thomas Barfield: Part 2

July 27, 2023

FO° Talks: Make Sense of Afghanistan With Thomas Barfield: Part 1

July 26, 2023

FO° Talks: An Indian Foreign Secretary Makes Sense of Multipolarity

July 22, 2023

FO° Talks: Rank Hypocrisy: Do Global Rankings Misrepresent India?

July 19, 2023

FO° Exclusive: Distressed China Plays Nice With US for Now

July 16, 2023

Fair Observer, 461 Harbor Blvd, Belmont, CA 94002, USA