Good morning! I will be writing to you in the minutes before I have to leave for San Francisco so that I can catch a few flights. I'm moderating two sessions, one on scaling ARR, so come hang! Anna Heim wrote the real Exchange today and it is a great piece of writing. Consider this a bonus.
The selloff may be behind us.
The decline in the value of technology stocks has subsided, with public cloud companies seeming to have found a new trading level that they can comfortably hover around. Good and bad news for technology companies more generally and tech startups in particular.
The rapid, kind of terrifying valuation declines we saw among modern software companies in the final months of 2021, and the opening months of 2022, have stopped. The market repricing of the value of software appears ready to stick.
Money, markets and startups are explored by the Exchange.
You can get The Exchange newsletter every Saturday.
The decline in the value of annual recurring revenue may be slowing, but there is no indication that we are about to see a rebound.
There are a few macro factors that have been pushing the value of tech stocks around. The inverse relationship between interest rates and tech stocks is the key. The mechanics behind the dynamic are unimportant for our purposes today.
Interest rates may be the best reason to believe that the selloff in software stocks is behind us.
All Rights Reserved © 2024
