Income season is usually a snoozer if you’re not obsessed with the stock market. So I understand the last thing you want to read about this morning is a meta-analysis of cross-industry earnings. But listen to me.
Marketingwithanoy has tracked a select few earnings reports from major tech companies in its current Q4 2021 reporting cycle. The picture that emerges is that of companies that have been boosted by the pandemic returning to Earth, while companies that are too experienced a decline in demand due to COVID-19 are rebounding.
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The latest business results tell us that the pandemic is over, from a business perspective. This is critical for startups to understand.
Roblox shares are down today, as is Shopify’s. But Airbnb and Uber and Lyft are doing better than you expected.
What loses the favour? Software, video and audio streaming, commerce services, e-commerce, consumer fintech, gaming and, in some cases, social networking. And on the previously losing but now winning side, we have shelter and travel to begin with. The market has turned upside down and startups need to prepare for another upside-down world.
So let’s talk about accelerated and slowed boot sectors in light of what we’ve learned from Big Tech’s blinking warning and jackpot lights.
Down is up, up is down
It was December when Marketingwithanoy started sounding the alarm that software stocks, one of the biggest beneficiaries of pandemic tailwinds in terms of market demand and investor favor, were on the decline. The sale continued into the new year. We should have read more about the early signal investors sent in the public market.