Hello and welcome back to Equity, the podcast about the business of startups, where we unpack the numbers and nuance behind the headlines.
Our Monday show covers the latest in tech news from the weekend and what’s making headlines early in the week. This fine Monday we are celebrating the start of June, and the fact that there are still earnings rounds for us to cover and enjoy!
Stock Market Update
Stocks are mixed around the world this morning while crypto stays pretty flat. Earnings this week that we’re excited about include GitLab, Couchbase, Yext, Smartsheet and HashiCorp. (We’re also keeping an eye on the Atomic Wallet hack.)
Why Stocks Are Mixed
The stock market is a complex and ever-changing beast. On one hand, the current global economic situation has led to increased uncertainty among investors, causing them to be more cautious with their investments. This caution has resulted in a mixed bag for stocks, with some performing well while others struggle.
On the other hand, companies like GitLab and HashiCorp are expected to report strong earnings this week, which could help boost investor confidence and drive up stock prices.
Reddit’s Proposed API Changes
Reddit’s proposed API changes (charges, more like) are having a pretty big impact on the service’s userbase; there are calls for a blackout of certain forums in response to the proposed updates. Reddit, on the other hand, is a business and needs to make money.
The Impact of Proposed Changes
The proposed API changes by Reddit have sparked controversy among its users. Many feel that the changes will stifle innovation and limit access to valuable data, while others believe it’s necessary for the company to generate revenue.
Reddit has a huge user base, with over 430 million monthly active users. If these changes go through, it could impact the way developers interact with the platform and potentially lead to a loss of users.
Twitter’s Revenue Decline
News broke this morning that Twitter’s revenues are down sharply compared to year-ago totals, at least when we consider its American advertising incomes. Twitter does more than just ads in North America, but given that it’s likely a pretty big chunk of its total top line, it’s not good news.
What This Means for Twitter
The decline in revenue is a concerning trend for Twitter. The company has been trying to increase its ad revenues through various means, including the introduction of new features and partnerships with other companies.
However, the sharp decline in ad revenues suggests that these efforts may not be yielding the desired results. This could lead to a decrease in investor confidence and potentially impact the company’s stock price.
Canva’s Valuation Slashed
Canva’s valuation was slashed by a mutual fund (something that we have seen a lot lately), the latest in a string of similar headlines for other unicorns.
The Rise of Mutual Funds
Mutual funds are increasingly becoming more aggressive when it comes to valuations. This is causing a ripple effect across the startup ecosystem, with many companies seeing their valuations slashed by these investors.
This trend is not just limited to Canva; several other unicorns have also seen their valuations reduced in recent times. The reason for this is simple: mutual funds are looking to make a profit from their investments and are willing to take risks to achieve that goal.
WWDC 2023
WWDC is today. Get. Hype.
What WWDC Means for the Tech World
WWDC (Worldwide Developers Conference) is an annual event where Apple showcases its latest innovations in software development. This year’s conference promises to be exciting, with rumors swirling about new features and technologies that will change the way we interact with technology.
From artificial intelligence to augmented reality, there are many reasons why tech enthusiasts should be excited about WWDC 2023.
Conclusion
In conclusion, this week has been a wild ride for the tech world. From Reddit’s proposed API changes to Twitter’s revenue decline, there have been many developments that will impact the startup ecosystem.
As we continue to navigate these uncertain times, it’s essential to stay informed and adapt to changing circumstances. The one thing that remains constant is innovation, which continues to drive progress in the tech industry.
Equity Drops
Equity drops at 7 a.m. PT every Monday, Wednesday and Friday, so subscribe to us on Apple Podcasts, Overcast, Spotify, and all the casts.
For episode transcripts and more, head to Equity’s Simplecast website.
We hope you’ve enjoyed this episode of Equity and will join us next week for another exciting discussion about the business of startups.
Equity Team
Alex Wilhelm was a senior reporter for TechCrunch covering the markets, venture capital and startups. He was also the founding host of TechCrunch’s Webby Award-winning podcast Equity.
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