The tech titans of Silicon Valley are in serious trouble

Well, MAGMA (Microsoft, Apple, Google, Meta, Amazon) is unaffected and will continue to survive this decade. All those unprofitable startups that were racing to the IPO finish line in 2019 are now in trouble and need to make money and show that they are turning a profit rather than running themselves into the ground.

Looking back at this wild prediction [0] it seems like I'm ticking most of the boxes in the 2020s. Let's see if these recently IPO'd companies of 2019 and 2022 will survive from now to actually make money.

[0] https://news.ycombinator.com/item?id=21627809

""You look pedestrian if you can't see the BIG PICTURE and instead focus on a silly thing like revenue," they told me. According to this founder, the standard retort to questions about profitability for the last decade or so has been: "Amazon wasn't profitable for decades ... yada yada.""

""They're taken on as a holy grail among social-media people, yet they're completely unvalidatable," she said. "If you're buying the company based on a metric it makes up itself, like daily active users, well, then you're a complete idiot.""

""You lavishly pay everyone in equity and it's not an expense until your stock collapses," Chanos said. "Then either you have to issue a million shares or you have to pay people in cash." Cash is something many of these companies do not have, and issuing shares would only help push the stock down further. To Chanos, as far as tech stocks have fallen this year, they still have a great distance to travel before their prices accurately reflect their true financial metrics."

""For a bunch of Silicon Valley guys to say, 'We figured this out when no one else has,' is the height of financial arrogance," Chanos said."

That's a terrible picture of Marc Andreesen. I mean, none of those tech titans are depicted in a flattering likeness, but man, Andersen is really weird looking.

I’m going to give this a big gigantic, “ who cares?” Let them burn. Here’s something I don’t hear anyone talking about. IT companies have to be among some of the easiest companies in the world to roll up right now. At least in the 90’s you had to sell off all those Herman Millar chairs and sell off the servers. What do you have to do now? Pay your last AWS bill and close the account. Done. Sure some VCs money goes up in flames but that’s how the game works. That’s the V part.

I'm looking forward to seeing some of these guys party like it's 1929.