- Cryptocurrencies plummet, stocks slide, and startups are delaying their growth efforts.
- It’s a tough time for all types of businesses as CEOs and CFOs warn that things could get worse.
- Here’s what investors and employees expect:
Bitcoin is lagging behind, but Coinbase’s share price is getting worse.
The major market for digital assets has nearly halved despite the flagship cryptocurrency dropping 20% of its value last week.
“I think it’s worth talking to the elephant in the room. That, of course, is that the broader market has fallen.” CEO Brian Armstrong told investors: on wednesday. “We are seeing a downtrend in growth tech stocks and risky assets.”
The company said in its guidance it expects a “long-term, stressful scenario” for the rest of the year.
Inflation, interest rate hikes, wars in Eastern Europe and a slowdown in China blend into the grim economy, with many business leaders warning tones in memos and earnings reports in recent weeks.
“In times of uncertainty, investors seek safety,” Uber CEO Dara Khosrowshahi said in a memo to employees a week after Uber reported a $5.9 billion loss in the first quarter.
However, the current market seems to offer very little about a safe divergence.
Investors may have previously moved between stocks, bonds, or currencies to protect their wealth, but all three categories appear to slide together.
Under these conditions, Khosrowshahi said the company would treat hiring as a “privilege” and cut spending on “least efficient” marketing and incentives.
“The average Uber employee is just over 30,” Khosrowshahi said. “That means you’ve had a long and unprecedented strength in your career.” “This next period will be different and will require a different approach.”
The stock plummeted when it lost its first subscribers in a decade and reported an additional 2 million cancellations expected in the coming months.
“A big boost against Corona”
Until recently, the picture was blurred,” he said in a letter to the company’s shareholders.
Disney outperformed its streaming rivals in the previous quarter, but the unexpected rise in the first half of the fiscal year was eat away at growth expected in the second half. Disney stock plummeted on the news.
Other companies, including connected fitness company Peloton and electric vehicle startup Canoo, eachthin capital letters” and “substantial questions about the company’s ability to continue as a going concern.”
Meanwhile, thousands of jobs are being lost in epidemic-era success stories like Carvana, Better and Robinhood. Because these companies are facing rising labor costs and slowing sales.
Meta’s CFO David Wehner said in a leaked note to employees that Facebook’s parent company “will have to make difficult decisions about the projects we’re pursuing.” Wehner adds that this means reducing hiring targets and reviewing staffing assignments in the second half of the year.
One way or another, 2022 will be the Grizzly Bear of the Year.