If you aren’t enthralled with the stock market, earnings season is usually a snoozer. So I understand if a meta-analysis of cross-sector earnings is the last thing on your mind this morning. But bear with me. In the current Q4 2021 reporting cycle, TechCrunch has tracked a small number of earnings reports from big technology businesses. The picture that emerges is one of the businesses that have been benefited from the pandemic returning to Earth, while businesses that have seen a decline in demand owing to COVID-19 are rebounding.
From a commercial standpoint, the latest corporate results indicate that the pandemic is finished. Understanding this is crucial for startups. Roblox and Shopify’s stocks are also down today. However, Airbnb, Uber, and Lyft are performing better than you might think.
What’s going out of style? Software, video and audio streaming, e-commerce, consumer fintech, gaming, and, in some circumstances, social networking are all examples of consumer fintech. We have lodging and travel to begin on the previously losing but now winning side. The market has inverted, and startups must prepare for a world that has inverted again. So, in light of what we’ve learnt from Big Tech’s flashing warning and jackpot lights, let’s talk about accelerated and decelerated startup sectors.
In December, TechCrunch began to raise the alarm that software companies, which had benefited from epidemic tailwinds in terms of market demand and investor favor, were falling out of favor. The downturn continued into the New Year. We should have paid more attention to the early signals sent by public-market investors.
JP Morgan’s analyst report has put a wrench in the market for technology stock values. While the missive’s impact is being felt most acutely among public corporations, it may also have an influence on the valuations of yet-to-be-public technological enterprises. The report shifted the bank’s valuation outlook on a number of technology companies. Investors yanked the rug out from under a few big tech businesses in response to what CNBC termed as a “wave of downgrades” from JP Morgan. After the downgrades were made public, here’s a brief list of the losses from yesterday’s trading.