Even as valuation had come down tremendously for big technology stocks, worrying future signs appeared. For one, chasing growth by endless spending may no longer hold. Many the technology stocks, whether in consumer goods/services or fintech, had begun to cut back on their expenditures. This could pressure the fading global economy, adding milky signs to earning’s outlook.
💰Cost-cutting towards stability?🗝
Cautions were already rising as Pika World observed a wave of cost-cutting measures across leading sectors. First, Robinhood announced the laying of about 9% of its workforce in late April. Then we have Meta Platforms telling its staff that some projects may see cutbacks. Next, Twitter axed two of its senior staff and froze hiring for various roles. Then came Uber, which stated plans to reduce marketing and other expenses in its email.
💎Role of enterprise spending in tough times🏋
Such a shift in sentiments and behaviour could be a tipping point as other companies may follow the same route and re-align their expenditure or right “size”. It came at a sensitive period when most e-commerce and consumer electronic sales were weakening, and that enterprise spending is the pillar that keeps the castle intact.
Pika World will be observing major trends ahead as we bring more insights. It has been a tremendous tough week as Pika Nat faced multiple setbacks in portfolio weakening and crypto account hack. Nonetheless, our love for sharing content brings us back to your episodes of market insights.
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