If you bring bad news on the technology stock prices on Twitter, some very helpful people will send you multi-year charts putting recent declines in historical context. Yes thanks; Didn’t know you could zoom out.
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The instinctive urge to proclaim that massive tech stock sellers don’t matter is either a bad faith argument or an ill-disguised fear. More on that in a moment. Either way, the recent negative price movement in tech stocks – and software stocks in particular – is significant.
Why? Because we are not only seeing software stocks flirting with bear market territory in technical terms, but also a pretty noticeable pullback in the value of the market itself. fastest growing technology companies. This means that public valuation multiples – key indicators for unicorns that are still private and young startups – are decreasing.
Have valuations moved enough to slow down the current venture capital windfall? Probably not. But we could be closer to that tipping point than you think.
The Bessemer Cloud Index is traceable in public markets through the WisdomTree Cloud Computing Fund, which is essentially a commercial version of the whole company.
After hitting a 52-week high of $ 65.51 last month, the market value of the publisher’s basket slipped to $ 53.00 this morning. That’s a 19.1% drop, or 90 basis points below the 20% required for a particular asset, or collection of assets, to reach technical bear market territory.
We are close, in other words.