LinkedIn shares drop 40%, erasing $10B of company's value
A lot of people hating on LNKD here, but this isn&#x27;t really company-specific.  This is a macro shift.  LNKD being down by 40% by only guiding down 8% below estimates is a big warning of how the market is about to treat all bloated growth stocks.  In 2013, if they reported the same results, the stock would have been flat or slightly down.  It&#x27;s a major shift in investor sentiment.<p>Bubble bursts always start in the public markets.  Next, VC-backed &quot;unicorns&quot; with ludicrous multiples will soon find themselves unable to raise cash at even half their previous valuations.  Then those companies will have to tighten their spending which means layoffs and smaller revenue growth which is a vicious cycle towards even lower valuations, bankruptcies and ultimately a much worse job market for tech workers.<p>I&#x27;m expecting a 30-40% decline in S&amp;P 500, 30% decline in bay area real estate values, 30% of bay area &quot;well-funded&quot; startups going bust, and 25% reduction in market rate pay for software engineers over the next 2 years.  Hopefully that will turn out to be a gloomy forecast, but it&#x27;s best to prepare for the worst.