Big Technology Podcast Optimism In A Tech Downturn — With Packy McCormick and Austin Rief
May 18, 2022
Packy McCormick, author of Not Boring and founder of Not Boring Capital, joins Austin Rief, CEO of Morning Brew, for a deep dive into the tech industry's current struggles. They examine why tech is hit hardest by downturns and highlight surprising areas of optimism. The duo also discusses changes in their investment strategies, the effects of the crypto crash, and the impact of advertising adaptations during economic shifts. Plus, they dish on Elon Musk's Twitter acquisition and its potential implications.
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Market Downturn Causes
- The current market downturn is due to rising interest rates, shaking investor confidence previously fueled by easy money.
- Overly optimistic valuations are now correcting, impacting growth assets like tech stocks and cryptocurrencies.
Overestimation of COVID Impact
- Consumer preferences shifted during COVID, but not as drastically as some predicted, leading to overinvestment in some sectors.
- Companies, encouraged by investors, prioritized growth at all costs, creating unsustainable business models.
Responding to Downturns
- Act swiftly and decisively if your company's current size isn't sustainable.
- Early layoffs, while difficult, can be a necessary step towards achieving stability.