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Oct 13 2008

Tech Economy: From Steady to Abrupt fall

Sardar Mohkim Khan 

image thumb67 Tech Economy: From Steady to Abrupt fall

If one were to say that the economic condition in the tech world is not suffering much given the present fall I would be glad to hear ones justification for it. The stock shares have taken a serious plunge over the last decade and especially the present year, where rates crashing further appears to happen on a daily basis.

Let’s take into account Yahoo for an instant. It’s stocks were cruising at $44+ in 1999 before they slumped to just over $22, before Microsoft came out with a bid (that Yahoo denied in favour of Yahoo/Google). Yahoo’s stock has fallen to $12.3 from $22 in less than a couple of months. Those of Apple were low at $18.5 (in 1999) before they peaked at $200 and have fallen below $100 in the space of a few months.

The present scenario is signalling the worst to come for the giants that have ruled the scene for so long and it’s even more hostile for the countless start-ups that keep surfacing now and . The problem for them is not seeding out funds for the big shoot but that in surviving in the fittest manner to keep funding floating in. Investors are pretty watchful about where they are putting the money. Digg founder Kevin Rose was pretty vocal at mouthing out advices for thee start-ups, saying:

I think that a lot of the advice going out there to start-ups right now is to pare back a little bit and get into a mode that you can survive in.

The situation can, in no way be taken lightly given the massive lay-offs that have marred the tech world. What remains to be seen presently is how much more denting will the tech sphere take before it crumbles? What strategy do they have to save themselves apart from cutting short staff? I think larger firms should invest and reinforce those departments that give them a huge chunk of revenue, instead of jumping into every ring. Let’s just wait and see what amount of hammering do the stocks take with time; one thing for sure, I won’t be surprised if Yahoo sells out cheap to Microsoft as rumors have it.

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