EXPLANATORY JOURNALISM: Peter Kafka reports on the collision of media and technology
". . .We’ve been watching this play out for most of the year as tech stocks dropped, but it came into focus this week when Alphabet, Meta, and Amazon all saw their shares get hammered and the sector collectively lost$400 billionin value.
All of the tech guys have different reasons to worry investors, but I’d argue that all of them have the same underlying problem: They’re mature companies that are no longer going to impress Wall Street with crazy growth from their core businesses, and none of them look like they have any new giant businesses coming down the pike. Alphabet, for instance, just posted revenue growth of 6 percent — its weakest quarter in a decade. . ."
The Big Tech boom is over and Wall Street knows it
Meta and the rest aren’t going away, but now they’re big boring companies. Maybe that’s not a terrible thing.
But in theory, all of those would-be Facebook employees who aren’t getting hired there can end up ... somewhere else more interesting. One of the animating ideas beyond the Web3 craze of the last couple years was that the big tech companies had become so big and powerful that it was impossible to make anything new without their permission. Now they’re still big and powerful, but maybe not as appealing to the kind of person who wants to make a new thing. That’s not a bad idea.
* It’s an interesting story and also maybe amusing and maybe scary and I’d recommend starting with Nilay Patel if you want a bracing read about what’s next.
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