Tech Earnings Matter More Than Ever as the Bubble Deflates
- Unprofitable tech stocks underperform in down year for tech
- Multiples have compressed this year alongside a rise in rates
Among the unprofitable companies with the biggest stock declines this year are Unity Software, Okta. and Asana.
Photographer: Gabby Jones/BloombergThis article is for subscribers only.
Investors in technology companies are focused more than ever on profits, following an era when low interest rates drove a speculative frenzy in money-losing companies.
Unprofitable companies have underperformed this year and are likely to continue doing so, investors say. A slowing economy and the threat of recession make their stocks a riskier bet than usual, suggesting that the unwinding from the peak of pandemic-era speculation may not yet be done.