Apple, Facebook, Google, Microsoft and Twitter all hit hard by tumbling stock markets on dark day for tech, dubbed: Black Monday
“The global stock market took a significant tumble earlier this week, amid concerns over China’s Black Monday, and the slide hit some of Silicon Valley’s biggest tech companies, including Apple, Google, Twitter, and Facebook.
“When the stock markets opened in New York on Monday, share prices fell for all four of these giants. At their lowest points, Twitter was down 17.2 percent, Facebook 12.6 percent, Apple 11 percent, and Google 7.9 percent.”
To read the full article, visit WIRED.
Twitter set to face more uncertainty after Black Monday crash saw stock fall to all-time low
“Twitter’s stock is continuing to trade below its IPO price. It crashed to as low as $21.01 as the stock markets opened. That’s an eye-watering 18.7% plunge.
“Analysts have attributed the decline to things like China’s slowdown, uncertainty in Greece and Europe, and the prospect of higher interest rates some time soon.
“Twitter, however, has a bunch of its own problems that are troubling investors. It still doesn’t have a permanent CEO in place of Dick Costolo, and its monthly active user growth has stalled.”
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The stock plunge from Black Monday is expected to trickle down to emerging tech startups shortly
“What does all this mean for the private markets, where valuations have been stretched by hedge funds, private equity shops and mutual fund companies acting as late-stage venture firms?
“The market has been so overpowered for such a long time that it’s been a challenge for us to do the kind of deals we want to do. Deals that were too expensive a week or month ago all of the sudden become attractive as companies are forced to reel in their expectations. Valuation-conscious investors win.
“When fear takes over, investors tend to flee risky assets, and few are as risky as growth-oriented tech companies that are still proving out their model. If there’s no appetite for tech IPOs over a long period of time and late-stage capital dries up, even some of the most promising venture-backed companies can be forced to resize their expectations.”
To read the full article, visit CNBC.
Mashable’s Seth Fiegerman foresees the more advanced tech startups suffering in the wake of Black Monday’s stock market downturn
“The real hit from Black Monday’s massive stock plunge will likely be to more mature tech companies, which are in the final stretch before a public offering.
“Scott Nolan, a partner at Founders Fund said: “If a correction in the public tech stocks continues, I would expect that to primarily impact the very late stage private tech companies, more than the mid or early ones.”
“Worse still: In a crash, these mature startups may never find a way to return the money their investors put into them. Whether IPO or merger, deal-making scatters in the face of a market crash. The IPO pipeline, already lackluster before the market bloodbath, could become a minefield if stocks continue to fall. A painful stock decline for public tech companies could also limit the ability of businesses like Facebook or Google (now operating under the Alphabet umbrella) to push for multi-billion dollar acquisitions.”
To read the full article, visit Mashable.
Mashable’s Patrick Kulp advises worried tech startups to look to the past to help guide their future after Black Monday
“The stock market is having a panicky moment — but it’s not the first, and it’s not the worst. But the market’s rocky week doesn’t necessarily mean it’s time to hunker down for a financial crisis just yet.
“Ian Sheperdson, chief economist at Pantheon Macroeconomics said:”You can have any damn shift in the stock market that won’t have any effect on the economy. The people who think they’re losing money just need to remember that.”
“Rather than panicking over doomsday scenarios, analysts say, it’s more helpful to use past events as lenses to size up the current market fiasco.”
To read the full article, visit Mashable.
The Chinese stock market continues to tumble in the days after Black Monday, but the rest of the world is beginning to bounce back
“After a three-day rout that erased nearly $3 trillion in value from stocks globally, markets other than China’s on Tuesday showed signs that selling pressures were easing.Stocks in Europe have opened higher and continued to climb.
“It is too soon to know whether the rebound will last, but there were signs on Tuesday that many analysts might have been right in saying that the recent global sell-off of stocks and commodities was an overreaction to China’s specific economic and financial market problems.”
To read the full article, visit The New York Times.