the US federal Reserve raised the price of money again yesterday. Investors expected the move, but shares plunged after the Fed declined to tell investors it plans to slow the pace at which it raises interest rates going forward, as some had hoped.
While the shares of many US companies fell in the wake of the news, tech stocks took a special blow.
Then a few tech companies reported profits. You have to empathize with them to some degree – reporting earnings during a down cycle for your industry right after market conditions just got tougher isn’t the stuff of CEO dreams. The opposite actually.
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But the earnings news wasn’t all bad. Despite a weak ad market endangering the world’s Snaps and Metas, and in contrast to slowing cloud growth in general, there were a few green shoots amid yesterday’s earnings reports that are worthy of our time.
Why? Because seeing investors in the public market react warmly to the results of smaller tech companies can give us a sense of how unicorns might be valued if and when they go public. Robinhood, the consumer trading platform, is up about 9% this morning after its own earnings report, worth about $10 billion. And later this afternoon, Coinbase will report results.