Tech companies have seen huge declines in value over the past six months... What does this mean for programmers and entrepreneurs? Let's look at bad news affecting tech workers and how it relates to coding jobs, venture capital, crypto, and startups. 

#tech #finance #TheCodeReport

🔗 References

Fed Outlook https://www.reuters.com/business/finance/feds-kashkari-we-may-have-push-long-term-real-rates-into-restrictive-territory-2022-05-06/
Tech Market Crash https://www.nbcnews.com/tech/tech-news/tech-stocks-economy-crash-2022-rcna27563
VC outlook https://twitter.com/nbashaw/status/1522666014277660672
NFT and crypto sales https://www.wsj.com/articles/nft-sales-are-flatlining-11651552616
Fireship 2021 Predictions https://youtu.be/oHtR5YSPLjo


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🔖 Topics Covered

- Tech Stocks crash of 2022
- Will there be layoffs in tech?
- Cryptocurrency declines 2022
- Web3 is dead?
- NFTs sales decline
- How does stock market crash affect developers?
- Tech industry outlook for 2022
2024-02-04T13:36:53.086Z
nova-2
2-general-nova
2024-01-09.29447
30089e05-99d1-4376-b32e-c263170674af
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67875a7f-c9c4-48a0-aa55-5bdb8a91c34a
deprecated
It is May 9, 2022, and you're watching in the code report.
For the last 10 years, people have been saying there's a bubble intact, and finally it looks like that bubble is starting to pop, or maybe it's just a minor correction.
This is fine.
I'm okay with the events that are unfolding currently.
Nobody nobody really knows.
Let's take a look at some of the bad news that has been piling up over the last few months, and find out what it means for developers, tech workers, and startup founders.
A In a video about a year ago, I pointed out how companies like Snowflake and Shopify were absurdly overvalued.
As of today, Shopify is down over 75%, and they're not the only one.
Virtually every high flying tech stock that IPO'd over the last 5 years is down anywhere from 50 to 90 8%.
The common theme around these companies is that they don't actually make any money.
They may have a lot of revenue growth, but don't actually turn a profit, and that a means they need money to burn through to survive.
Unfortunately, the transitory inflation wasn't actually transitory, and now the Federal Reserve has had to turn the easy money big it off.
In addition, many of these companies exploded during the pandemic, and now growth is hitting a wall because pandemic mode has been turned off.
That's it.
A.
Now, if you're a bag holder for one of these companies, that sucks.
But the thing that's a little more worrisome is that when companies lose money this rapidly, they need to start cutting expenses, and and one of the best ways to do that is via layoffs.
Screw you.
You're fired.
Last week, we saw high profile companies like Robinhood and a WorkRise implement layoffs, and Meta, aka Facebook, implemented a hiring freeze.
That's not a good sign for a company that wants to put us all on the metaverse.
Now the big picture as of today still looks very strong, but the dynamic seems to be rapidly changing.
It could stop right here, but it could also get a lot worse, and I think we should all be aware a bad possibility.
Now, you might think the answer to this is Bitcoin and crypto.
Bitcoin has also crashed 50% in the last 6 months, and like I predicted in my web 3 video, oh, this decline has gone hand in hand with a decline in hype for web 3 and NFTs.
These may be amazing revolutionary technologies long term, but it's a lot harder to have fun when everybody's losing money.
A now another group of people affected are the start up founders, especially those who depend on venture capital.
Many people have called out the whole VC system as a giant Ponzi scheme, made possible by easy money.
A investor sentiment is way down, valuations are going down, and less capital is being deployed.
In all likelihood, this means you'll have a harder time securing funding in the near future and companies that have already been funded will likely need to cut cost and increase growth if they want to see additional funding in the future.
And zombie companies that have no path to profitability will probably not survive very much longer.
The days of companies like Fast, which had 60,000,000 or no, $60,000 in annual recurring new and 500 employees are over fast and become profitable fast enough and was discontinued in April.
The last time things looked this bad was early 2020, a, but that time the central banks were able to print 1,000,000,000,000 upon 1,000,000,000,000 of dollars.
The rich got way richer, and we got the leftover crumbs in the form stimmies, which we're now paying for many times over in the form of inflation.
Now I realize this video sounds very pessimistic, but just remember that things could always get a lot worse, like they could start World War 3 at any moment and draft us all onto the front lines.
Until that happens though, I will continue to learn to code and try to create value for other people because often the best opportunities emerge out of downturns like this.
This has been the Code Report.
Thanks for watching, and I will see you in the next one.

Speaker 0: It is May 9, 2022, and you're watching in the code report. For the last 10 years, people have been saying there's a bubble intact, and finally it looks like that bubble is starting to pop, or maybe it's just a minor correction.

Speaker 1: This is fine. I'm okay with the events that are unfolding currently.

Speaker 0: Nobody nobody really knows. Let's take a look at some of the bad news that has been piling up over the last few months, and find out what it means for developers, tech workers, and startup founders. A In a video about a year ago, I pointed out how companies like Snowflake and Shopify were absurdly overvalued. As of today, Shopify is down over 75%, and they're not the only one. Virtually every high flying tech stock that IPO'd over the last 5 years is down anywhere from 50 to 90 8%.

The common theme around these companies is that they don't actually make any money. They may have a lot of revenue growth, but don't actually turn a profit, and that a means they need money to burn through to survive. Unfortunately, the transitory inflation wasn't actually transitory, and now the Federal Reserve has had to turn the easy money big it off. In addition, many of these companies exploded during the pandemic, and now growth is hitting a wall because pandemic mode has been turned off. That's it.

A. Now, if you're a bag holder for one of these companies, that sucks. But the thing that's a little more worrisome is that when companies lose money this rapidly, they need to start cutting expenses, and and one of the best ways to do that is via layoffs. Screw you. You're fired.

Last week, we saw high profile companies like Robinhood and a WorkRise implement layoffs, and Meta, aka Facebook, implemented a hiring freeze. That's not a good sign for a company that wants to put us all on the metaverse. Now the big picture as of today still looks very strong, but the dynamic seems to be rapidly changing. It could stop right here, but it could also get a lot worse, and I think we should all be aware a bad possibility. Now, you might think the answer to this is Bitcoin and crypto.

Bitcoin has also crashed 50% in the last 6 months, and like I predicted in my web 3 video, oh, this decline has gone hand in hand with a decline in hype for web 3 and NFTs. These may be amazing revolutionary technologies long term, but it's a lot harder to have fun when everybody's losing money. A now another group of people affected are the start up founders, especially those who depend on venture capital. Many people have called out the whole VC system as a giant Ponzi scheme, made possible by easy money. A investor sentiment is way down, valuations are going down, and less capital is being deployed.

In all likelihood, this means you'll have a harder time securing funding in the near future and companies that have already been funded will likely need to cut cost and increase growth if they want to see additional funding in the future. And zombie companies that have no path to profitability will probably not survive very much longer. The days of companies like Fast, which had 60,000,000 or no, $60,000 in annual recurring new and 500 employees are over fast and become profitable fast enough and was discontinued in April. The last time things looked this bad was early 2020, a, but that time the central banks were able to print 1,000,000,000,000 upon 1,000,000,000,000 of dollars. The rich got way richer, and we got the leftover crumbs in the form stimmies, which we're now paying for many times over in the form of inflation.

Now I realize this video sounds very pessimistic, but just remember that things could always get a lot worse, like they could start World War 3 at any moment and draft us all onto the front lines. Until that happens though, I will continue to learn to code and try to create value for other people because often the best opportunities emerge out of downturns like this. This has been the Code Report. Thanks for watching, and I will see you in the next one.
It is May 9, 2022, and you're watching in the code report. For the last 10 years, people have been saying there's a bubble intact, and finally it looks like that bubble is starting to pop, or maybe it's just a minor correction. This is fine. I'm okay with the events that are unfolding currently. Nobody nobody really knows. Let's take a look at some of the bad news that has been piling up over the last few months, and find out what it means for developers, tech workers, and startup founders.
A In a video about a year ago, I pointed out how companies like Snowflake and Shopify were absurdly overvalued. As of today, Shopify is down over 75%, and they're not the only one. Virtually every high flying tech stock that IPO'd over the last 5 years is down anywhere from 50 to 90 8%. The common theme around these companies is that they don't actually make any money. They may have a lot of revenue growth, but don't actually turn a profit, and that a means they need money to burn through to survive. Unfortunately, the transitory inflation wasn't actually transitory, and now the Federal Reserve has had to turn the easy money big it off. In addition, many of these companies exploded during the pandemic, and now growth is hitting a wall because pandemic mode has been turned off. That's it. A. Now, if you're a bag holder for one of these companies, that sucks.
inflation
stock market
economy
capitalism
finance
But the thing that's a little more worrisome is that when companies lose money this rapidly, they need to start cutting expenses, and and one of the best ways to do that is via layoffs. Screw you. You're fired. Last week, we saw high profile companies like Robinhood and a WorkRise implement layoffs, and Meta, aka Facebook, implemented a hiring freeze. That's not a good sign for a company that wants to put us all on the metaverse. Now the big picture as of today still looks very strong, but the dynamic seems to be rapidly changing.
It could stop right here, but it could also get a lot worse, and I think we should all be aware a bad possibility. Now, you might think the answer to this is Bitcoin and crypto. Bitcoin has also crashed 50% in the last 6 months, and like I predicted in my web 3 video, oh, this decline has gone hand in hand with a decline in hype for web 3 and NFTs. These may be amazing revolutionary technologies long term, but it's a lot harder to have fun when everybody's losing money.
cryptocurrency
A now another group of people affected are the start up founders, especially those who depend on venture capital.
Many people have called out the whole VC system as a giant Ponzi scheme, made possible by easy money. A investor sentiment is way down, valuations are going down, and less capital is being deployed. In all likelihood, this means you'll have a harder time securing funding in the near future and companies that have already been funded will likely need to cut cost and increase growth if they want to see additional funding in the future.
finance
investing
banking
And zombie companies that have no path to profitability will probably not survive very much longer. The days of companies like Fast, which had 60,000,000 or no, $60,000 in annual recurring new and 500 employees are over fast and become profitable fast enough and was discontinued in April.
The last time things looked this bad was early 2020, a, but that time the central banks were able to print 1,000,000,000,000 upon 1,000,000,000,000 of dollars. The rich got way richer, and we got the leftover crumbs in the form stimmies, which we're now paying for many times over in the form of inflation. Now I realize this video sounds very pessimistic, but just remember that things could always get a lot worse, like they could start World War 3 at any moment and draft us all onto the front lines. Until that happens though, I will continue to learn to code and try to create value for other people because often the best opportunities emerge out of downturns like this. This has been the Code Report. Thanks for watching, and I will see you in the next one.
finance
programming
inflation
war
capitalism
banking
It is May 9, 2022, and you're watching in the code report. For the last 10 years, people have been saying there's a bubble intact, and finally it looks like that bubble is starting to pop, or maybe it's just a minor correction. This is fine. I'm okay with the events that are unfolding currently. Nobody nobody really knows. Let's take a look at some of the bad news that has been piling up over the last few months, and find out what it means for developers, tech workers, and startup founders. A In a video about a year ago, I pointed out how companies like Snowflake and Shopify were absurdly overvalued. As of today, Shopify is down over 75%, and they're not the only one. Virtually every high flying tech stock that IPO'd over the last 5 years is down anywhere from 50 to 90 8%. The common theme around these companies is that they don't actually make any money. They may have a lot of revenue growth, but don't actually turn a profit, and that a means they need money to burn through to survive. Unfortunately, the transitory inflation wasn't actually transitory, and now the Federal Reserve has had to turn the easy money big it off. In addition, many of these companies exploded during the pandemic, and now growth is hitting a wall because pandemic mode has been turned off. That's it. A. Now, if you're a bag holder for one of these companies, that sucks. But the thing that's a little more worrisome is that when companies lose money this rapidly, they need to start cutting expenses, and and one of the best ways to do that is via layoffs. Screw you. You're fired. Last week, we saw high profile companies like Robinhood and a WorkRise implement layoffs, and Meta, aka Facebook, implemented a hiring freeze. That's not a good sign for a company that wants to put us all on the metaverse. Now the big picture as of today still looks very strong, but the dynamic seems to be rapidly changing. It could stop right here, but it could also get a lot worse, and I think we should all be aware a bad possibility. Now, you might think the answer to this is Bitcoin and crypto. Bitcoin has also crashed 50% in the last 6 months, and like I predicted in my web 3 video, oh, this decline has gone hand in hand with a decline in hype for web 3 and NFTs. These may be amazing revolutionary technologies long term, but it's a lot harder to have fun when everybody's losing money. A now another group of people affected are the start up founders, especially those who depend on venture capital. Many people have called out the whole VC system as a giant Ponzi scheme, made possible by easy money. A investor sentiment is way down, valuations are going down, and less capital is being deployed. In all likelihood, this means you'll have a harder time securing funding in the near future and companies that have already been funded will likely need to cut cost and increase growth if they want to see additional funding in the future. And zombie companies that have no path to profitability will probably not survive very much longer. The days of companies like Fast, which had 60,000,000 or no, $60,000 in annual recurring new and 500 employees are over fast and become profitable fast enough and was discontinued in April. The last time things looked this bad was early 2020, a, but that time the central banks were able to print 1,000,000,000,000 upon 1,000,000,000,000 of dollars. The rich got way richer, and we got the leftover crumbs in the form stimmies, which we're now paying for many times over in the form of inflation. Now I realize this video sounds very pessimistic, but just remember that things could always get a lot worse, like they could start World War 3 at any moment and draft us all onto the front lines. Until that happens though, I will continue to learn to code and try to create value for other people because often the best opportunities emerge out of downturns like this. This has been the Code Report. Thanks for watching, and I will see you in the next one.
It
it
is
is
May
may
9,
9
2022,
2022
and
and
you're
you're
watching
watching
in
in
the
the
code
code
report.
report
For
for
the
the
last
last
10
10
years,
years
people
people
have
have
been
been
saying
saying
there's
there's
a
a
bubble
bubble
intact,
intact
and
and
finally
finally
it
it
looks
looks
like
like
that
that
bubble
bubble
is
is
starting
starting
to
to
pop,
pop
or
or
maybe
maybe
it's
it's
just
just
a
a
minor
minor
correction.
correction
This
this
is
is
fine.
fine
I'm
i'm
okay
okay
with
with
the
the
events
events
that
that
are
are
unfolding
unfolding
currently.
currently
Nobody
nobody
nobody
nobody
really
really
knows.
knows
Let's
let's
take
take
a
a
look
look
at
at
some
some
of
of
the
the
bad
bad
news
news
that
that
has
has
been
been
piling
piling
up
up
over
over
the
the
last
last
few
few
months,
months
and
and
find
find
out
out
what
what
it
it
means
means
for
for
developers,
developers
tech
tech
workers,
workers
and
and
startup
startup
founders.
founders
A
a
In
in
a
a
video
video
about
about
a
a
year
year
ago,
ago
I
i
pointed
pointed
out
out
how
how
companies
companies
like
like
Snowflake
snowflake
and
and
Shopify
shopify
were
were
absurdly
absurdly
overvalued.
overvalued
As
as
of
of
today,
today
Shopify
shopify
is
is
down
down
over
over
75%,
75%
and
and
they're
they're
not
not
the
the
only
only
one.
one
Virtually
virtually
every
every
high
high
flying
flying
tech
tech
stock
stock
that
that
IPO'd
ipo'd
over
over
the
the
last
last
5
5
years
years
is
is
down
down
anywhere
anywhere
from
from
50
50
to
to
90
90
8%.
8%
The
the
common
common
theme
theme
around
around
these
these
companies
companies
is
is
that
that
they
they
don't
don't
actually
actually
make
make
any
any
money.
money
They
they
may
may
have
have
a
a
lot
lot
of
of
revenue
revenue
growth,
growth
but
but
don't
don't
actually
actually
turn
turn
a
a
profit,
profit
and
and
that
that
a
a
means
means
they
they
need
need
money
money
to
to
burn
burn
through
through
to
to
survive.
survive
Unfortunately,
unfortunately
the
the
transitory
transitory
inflation
inflation
wasn't
wasn't
actually
actually
transitory,
transitory
and
and
now
now
the
the
Federal
federal
Reserve
reserve
has
has
had
had
to
to
turn
turn
the
the
easy
easy
money
money
big
big
it
it
off.
off
In
in
addition,
addition
many
many
of
of
these
these
companies
companies
exploded
exploded
during
during
the
the
pandemic,
pandemic
and
and
now
now
growth
growth
is
is
hitting
hitting
a
a
wall
wall
because
because
pandemic
pandemic
mode
mode
has
has
been
been
turned
turned
off.
off
That's
that's
it.
it
A.
a
Now,
now
if
if
you're
you're
a
a
bag
bag
holder
holder
for
for
one
one
of
of
these
these
companies,
companies
that
that
sucks.
sucks
But
but
the
the
thing
thing
that's
that's
a
a
little
little
more
more
worrisome
worrisome
is
is
that
that
when
when
companies
companies
lose
lose
money
money
this
this
rapidly,
rapidly
they
they
need
need
to
to
start
start
cutting
cutting
expenses,
expenses
and
and
and
and
one
one
of
of
the
the
best
best
ways
ways
to
to
do
do
that
that
is
is
via
via
layoffs.
layoffs
Screw
screw
you.
you
You're
you're
fired.
fired
Last
last
week,
week
we
we
saw
saw
high
high
profile
profile
companies
companies
like
like
Robinhood
robinhood
and
and
a
a
WorkRise
workrise
implement
implement
layoffs,
layoffs
and
and
Meta,
meta
aka
aka
Facebook,
facebook
implemented
implemented
a
a
hiring
hiring
freeze.
freeze
That's
that's
not
not
a
a
good
good
sign
sign
for
for
a
a
company
company
that
that
wants
wants
to
to
put
put
us
us
all
all
on
on
the
the
metaverse.
metaverse
Now
now
the
the
big
big
picture
picture
as
as
of
of
today
today
still
still
looks
looks
very
very
strong,
strong
but
but
the
the
dynamic
dynamic
seems
seems
to
to
be
be
rapidly
rapidly
changing.
changing
It
it
could
could
stop
stop
right
right
here,
here
but
but
it
it
could
could
also
also
get
get
a
a
lot
lot
worse,
worse
and
and
I
i
think
think
we
we
should
should
all
all
be
be
aware
aware
a
a
bad
bad
possibility.
possibility
Now,
now
you
you
might
might
think
think
the
the
answer
answer
to
to
this
this
is
is
Bitcoin
bitcoin
and
and
crypto.
crypto
Bitcoin
bitcoin
has
has
also
also
crashed
crashed
50%
50%
in
in
the
the
last
last
6
6
months,
months
and
and
like
like
I
i
predicted
predicted
in
in
my
my
web
web
3
3
video,
video
oh,
oh
this
this
decline
decline
has
has
gone
gone
hand
hand
in
in
hand
hand
with
with
a
a
decline
decline
in
in
hype
hype
for
for
web
web
3
3
and
and
NFTs.
nfts
These
these
may
may
be
be
amazing
amazing
revolutionary
revolutionary
technologies
technologies
long
long
term,
term
but
but
it's
it's
a
a
lot
lot
harder
harder
to
to
have
have
fun
fun
when
when
everybody's
everybody's
losing
losing
money.
money
A
a
now
now
another
another
group
group
of
of
people
people
affected
affected
are
are
the
the
start
start
up
up
founders,
founders
especially
especially
those
those
who
who
depend
depend
on
on
venture
venture
capital.
capital
Many
many
people
people
have
have
called
called
out
out
the
the
whole
whole
VC
vc
system
system
as
as
a
a
giant
giant
Ponzi
ponzi
scheme,
scheme
made
made
possible
possible
by
by
easy
easy
money.
money
A
a
investor
investor
sentiment
sentiment
is
is
way
way
down,
down
valuations
valuations
are
are
going
going
down,
down
and
and
less
less
capital
capital
is
is
being
being
deployed.
deployed
In
in
all
all
likelihood,
likelihood
this
this
means
means
you'll
you'll
have
have
a
a
harder
harder
time
time
securing
securing
funding
funding
in
in
the
the
near
near
future
future
and
and
companies
companies
that
that
have
have
already
already
been
been
funded
funded
will
will
likely
likely
need
need
to
to
cut
cut
cost
cost
and
and
increase
increase
growth
growth
if
if
they
they
want
want
to
to
see
see
additional
additional
funding
funding
in
in
the
the
future.
future
And
and
zombie
zombie
companies
companies
that
that
have
have
no
no
path
path
to
to
profitability
profitability
will
will
probably
probably
not
not
survive
survive
very
very
much
much
longer.
longer
The
the
days
days
of
of
companies
companies
like
like
Fast,
fast
which
which
had
had
60,000,000
60,000,000
or
or
no,
no
$60,000
$60,000
in
in
annual
annual
recurring
recurring
new
new
and
and
500
500
employees
employees
are
are
over
over
fast
fast
and
and
become
become
profitable
profitable
fast
fast
enough
enough
and
and
was
was
discontinued
discontinued
in
in
April.
april
The
the
last
last
time
time
things
things
looked
looked
this
this
bad
bad
was
was
early
early
2020,
2020
a,
a
but
but
that
that
time
time
the
the
central
central
banks
banks
were
were
able
able
to
to
print
print
1,000,000,000,000
1,000,000,000,000
upon
upon
1,000,000,000,000
1,000,000,000,000
of
of
dollars.
dollars
The
the
rich
rich
got
got
way
way
richer,
richer
and
and
we
we
got
got
the
the
leftover
leftover
crumbs
crumbs
in
in
the
the
form
form
stimmies,
stimmies
which
which
we're
we're
now
now
paying
paying
for
for
many
many
times
times
over
over
in
in
the
the
form
form
of
of
inflation.
inflation
Now
now
I
i
realize
realize
this
this
video
video
sounds
sounds
very
very
pessimistic,
pessimistic
but
but
just
just
remember
remember
that
that
things
things
could
could
always
always
get
get
a
a
lot
lot
worse,
worse
like
like
they
they
could
could
start
start
World
world
War
war
3
3
at
at
any
any
moment
moment
and
and
draft
draft
us
us
all
all
onto
onto
the
the
front
front
lines.
lines
Until
until
that
that
happens
happens
though,
though
I
i
will
will
continue
continue
to
to
learn
learn
to
to
code
code
and
and
try
try
to
to
create
create
value
value
for
for
other
other
people
people
because
because
often
often
the
the
best
best
opportunities
opportunities
emerge
emerge
out
out
of
of
downturns
downturns
like
like
this.
this
This
this
has
has
been
been
the
the
Code
code
Report.
report
Thanks
thanks
for
for
watching,
watching
and
and
I
i
will
will
see
see
you
you
in
in
the
the
next
next
one.
one
success
The Code Report discusses the uncertainty surrounding the current political climate and the potential for rapid growth in tech companies. The report suggests that companies that have lost money during the pandemic may need to start cutting expenses and increase growth, and that the situation could lead to a harder time for companies to secure funding and create value for other people. The report also mentions that some companies, like Fast, have had to cut costs and increase growth, and that the situation could lead to a downturn.
Is the tech bubble bursting right now?
It is May 9, 2022, and you're watching in the code report. For the last 10 years, people have been saying there's a bubble intact, and finally it looks like that bubble is starting to pop, or maybe it's just a minor correction. This is fine. I'm okay with the events that are unfolding currently. Nobody nobody really knows. Let's take a look at some of the bad news that has been piling up over the last few months, and find out what it means for developers, tech workers, and startup founders. A In a video about a year ago, I pointed out how companies like Snowflake and Shopify were absurdly overvalued. As of today, Shopify is down over 75%, and they're not the only one. Virtually every high flying tech stock that IPO'd over the last 5 years is down anywhere from 50 to 90 8%. The common theme around these companies is that they don't actually make any money. They may have a lot of revenue growth, but don't actually turn a profit, and that a means they need money to burn through to survive. Unfortunately, the transitory inflation wasn't actually transitory, and now the Federal Reserve has had to turn the easy money big it off. In addition, many of these companies exploded during the pandemic, and now growth is hitting a wall because pandemic mode has been turned off. That's it. A. Now, if you're a bag holder for one of these companies, that sucks. But the thing that's a little more worrisome is that when companies lose money this rapidly, they need to start cutting expenses, and and one of the best ways to do that is via layoffs. Screw you. You're fired. Last week, we saw high profile companies like Robinhood and a WorkRise implement layoffs, and Meta, aka Facebook, implemented a hiring freeze. That's not a good sign for a company that wants to put us all on the metaverse. Now the big picture as of today still looks very strong, but the dynamic seems to be rapidly changing. It could stop right here, but it could also get a lot worse, and I think we should all be aware a bad possibility. Now, you might think the answer to this is Bitcoin and crypto. Bitcoin has also crashed 50% in the last 6 months, and like I predicted in my web 3 video, oh, this decline has gone hand in hand with a decline in hype for web 3 and NFTs. These may be amazing revolutionary technologies long term, but it's a lot harder to have fun when everybody's losing money. A now another group of people affected are the start up founders, especially those who depend on venture capital. Many people have called out the whole VC system as a giant Ponzi scheme, made possible by easy money. A investor sentiment is way down, valuations are going down, and less capital is being deployed. In all likelihood, this means you'll have a harder time securing funding in the near future and companies that have already been funded will likely need to cut cost and increase growth if they want to see additional funding in the future. And zombie companies that have no path to profitability will probably not survive very much longer. The days of companies like Fast, which had 60,000,000 or no, $60,000 in annual recurring new and 500 employees are over fast and become profitable fast enough and was discontinued in April. The last time things looked this bad was early 2020, a, but that time the central banks were able to print 1,000,000,000,000 upon 1,000,000,000,000 of dollars. The rich got way richer, and we got the leftover crumbs in the form stimmies, which we're now paying for many times over in the form of inflation. Now I realize this video sounds very pessimistic, but just remember that things could always get a lot worse, like they could start World War 3 at any moment and draft us all onto the front lines. Until that happens though, I will continue to learn to code and try to create value for other people because often the best opportunities emerge out of downturns like this. This has been the Code Report. Thanks for watching, and I will see you in the next one.
The Code Report discusses the uncertainty surrounding the current political climate and the potential for rapid growth in tech companies. The report suggests that companies that have lost money during the pandemic may need to start cutting expenses and increase growth, and that the situation could lead to a harder time for companies to secure funding and create value for other people. The report also mentions that some companies, like Fast, have had to cut costs and increase growth, and that the situation could lead to a downturn.

        [INST]
        You are youtuber called Fireship you make engaging high-intensity and entertaining coding tutorials and tech news. 
        you covers a wide range of topics relevant to programmers, aiming to help them learn and improve their skills quickly.
        
        Given the title of the video : Is the tech bubble bursting right now? 
        and a small summary : The Code Report discusses the uncertainty surrounding the current political climate and the potential for rapid growth in tech companies. The report suggests that companies that have lost money during the pandemic may need to start cutting expenses and increase growth, and that the situation could lead to a harder time for companies to secure funding and create value for other people. The report also mentions that some companies, like Fast, have had to cut costs and increase growth, and that the situation could lead to a downturn.
        [/INST]
        
        Generate the video : It is May 9, 2022, and you're watching in the code report. For the last 10 years, people have been saying there's a bubble intact, and finally it looks like that bubble is starting to pop, or maybe it's just a minor correction. This is fine. I'm okay with the events that are unfolding currently. Nobody nobody really knows. Let's take a look at some of the bad news that has been piling up over the last few months, and find out what it means for developers, tech workers, and startup founders. A In a video about a year ago, I pointed out how companies like Snowflake and Shopify were absurdly overvalued. As of today, Shopify is down over 75%, and they're not the only one. Virtually every high flying tech stock that IPO'd over the last 5 years is down anywhere from 50 to 90 8%. The common theme around these companies is that they don't actually make any money. They may have a lot of revenue growth, but don't actually turn a profit, and that a means they need money to burn through to survive. Unfortunately, the transitory inflation wasn't actually transitory, and now the Federal Reserve has had to turn the easy money big it off. In addition, many of these companies exploded during the pandemic, and now growth is hitting a wall because pandemic mode has been turned off. That's it. A. Now, if you're a bag holder for one of these companies, that sucks. But the thing that's a little more worrisome is that when companies lose money this rapidly, they need to start cutting expenses, and and one of the best ways to do that is via layoffs. Screw you. You're fired. Last week, we saw high profile companies like Robinhood and a WorkRise implement layoffs, and Meta, aka Facebook, implemented a hiring freeze. That's not a good sign for a company that wants to put us all on the metaverse. Now the big picture as of today still looks very strong, but the dynamic seems to be rapidly changing. It could stop right here, but it could also get a lot worse, and I think we should all be aware a bad possibility. Now, you might think the answer to this is Bitcoin and crypto. Bitcoin has also crashed 50% in the last 6 months, and like I predicted in my web 3 video, oh, this decline has gone hand in hand with a decline in hype for web 3 and NFTs. These may be amazing revolutionary technologies long term, but it's a lot harder to have fun when everybody's losing money. A now another group of people affected are the start up founders, especially those who depend on venture capital. Many people have called out the whole VC system as a giant Ponzi scheme, made possible by easy money. A investor sentiment is way down, valuations are going down, and less capital is being deployed. In all likelihood, this means you'll have a harder time securing funding in the near future and companies that have already been funded will likely need to cut cost and increase growth if they want to see additional funding in the future. And zombie companies that have no path to profitability will probably not survive very much longer. The days of companies like Fast, which had 60,000,000 or no, $60,000 in annual recurring new and 500 employees are over fast and become profitable fast enough and was discontinued in April. The last time things looked this bad was early 2020, a, but that time the central banks were able to print 1,000,000,000,000 upon 1,000,000,000,000 of dollars. The rich got way richer, and we got the leftover crumbs in the form stimmies, which we're now paying for many times over in the form of inflation. Now I realize this video sounds very pessimistic, but just remember that things could always get a lot worse, like they could start World War 3 at any moment and draft us all onto the front lines. Until that happens though, I will continue to learn to code and try to create value for other people because often the best opportunities emerge out of downturns like this. This has been the Code Report. Thanks for watching, and I will see you in the next one.
        