• s_s@lemmy.one
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    1 year ago
    1. The growth of online advertising revenue slowed in 2022 for the first time since 2009.It still grew, just slower.

    2. Interest rates went up.

    3. With the collapse of crypto and Silicon Valley Bank (which was overleveraged in crypto), VC money isn’t as free flowing. There really wasn’t that much institutional money in crypto, but it’s still a destablizing force and has had a ripple effect.

    4. AI is making more people aware of bots. This is related to point #1. A huge, unknown percentage of of FAANG revenue is selling online ads to bots instead of real eyeballs and once the word gets out, ad revenue will slow even more for any service depending on online ads (eg reddit).

    • homesnatch@lemm.ee
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      1 year ago

      One correction, SVB was not over-leveraged in crypto, they had too many government bonds when the interest rates went up, devaluing them.

    • Scrubbles@poptalk.scrubbles.tech
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      1 year ago

      I love number 1. The economy didn’t die, the money hasn’t dried up, these companies aren’t circling the drain.

      they just haven’t made much more money than last year

      And for some reason our gambling addict stock market economy says that’s a horrid thing. To only make a fraction more than last year’s record profits.

    • Hipstershy@lemmy.blahaj.zone
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      1 year ago

      Note that a lot of tech companies, particularly startups, operate at a massive loss while they increase their market share and outcompete established competitors. The idea is that once they’re entrenched they can start raising prices and cutting back on expenses to start making massive profits-- see how great it was to use Uber 10 years ago and Amazon 15 years ago versus now. This heel turn was always coming for a lot of these companies. Interest rates rising and investors being less willing to hand over cash after high-profile failures like crypto just hastened the shift.