Ghoulish times for tech
It's not been an easy Hallowe'en period for tech.
Twitter has continued its freewill, announcing it was shedding up to 9% of its workforce and shutting down the once-vaunted Vine.
Apple's iPhone sales continue to shrink, thanks to increased competition in China and lower demand for the 6s.
And Amazon missed its profit target, thanks to higher shipping costs, sending its share price down 5%.
Wall Street, and investors everywhere, are spooked. This is not the first time that tech giants have let the industry down. Nor will it be the last.
But as I've mentioned on this blog before, when these behemoths mess up, they cause problems for the smaller guys too. Especially around valuations, because start-up and early stage investors worry that the financial projections aren't really going to happen. Truth be told, most projections have been wrong throughout tech's history, but investors kept believing that this time it was different... Anyone remember the dot com bubble?
This is why private tech company valuations continue to fall. And why tech M&A is bound to get busier these coming months and years. Potential buyers smell bloody in the water, and founders worry that the market will continue to move against them.
And the more the giants fall, the more the little guy will suffer too.