Tech Business vs Public TradingDamien Moye
How long has it been seen you heard about a tech company going public on the NYSE? If it feels like it’s been a while, then you’re right.
No tech companies have gone public so far in 2016. The last time something like this happened was in 2009. In 2009, they went through the first several months with no tech company going public. The same thing is happening in 2016. But 2009, the US was in the middle of the Great Recession. Just two years ago, in Q2 2014, tech companies’ public dealings made 8.5 billion dollars. The next quarter, that number rose to 25 billion. But the boom was short lived. Beginning in 2015, startup companies got weary of IPO’s (Initial Public Offerings). Startup funding fell, and fell plenty. Venture capitalist went from being generous to struggling to keep out of the red. We’ve all heard, and I’ve reported it some, about how the Silicon Valley party is just about over. People are being laid off. Benefits and perks are being cancelled. Some businesses are forced to restructure their companies, and some are considering being bought out. I’ve looked at charts and I can see why Silicon Valley is on edge. The number of Internet IPOs, and the deals they’re worth. The numbers today are almost non-existent.
What does this say about the tech industry’s economy? What does this say about the US economy all together? I heard presidential candidate Donald Trump predicted another recession was coming soon. I don’t know if he means it or if he’s using scare tactics to get votes. Remember when tech companies went on the market and went up like crazy? Even Facebook, who had a slow start on the market, but even they made a profit. Now, Uber is virtually the only tech company who is doing well on the public market stage. Is this an omen of where the US, and global economies are headed?