Tech companies in recession

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LinkedIn

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Goldman Sachs
YoTubemore
Oct 25, 2018 25 Comments

Which tech companies will be ok during recession? Which ones will be hit the most?

For example, FB will take hit since it relies on Ads, advertisers and SMB will spend less.

Netflix will see more subscribers growth as people cut off expensive cords, but what about ads revenue and investment on original content?

Gaming sector will do well.

Apple: consumer hold on to their old phones as new iPhones are too expensive.

Google?

MSFT?

AMZN?

etc

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TOP 25 Comments
  • Facebook / Eng cevc12
    MSFT will be OK as well, their business line is way too diverse
    Oct 25, 2018 2
    • Microsoft Dmitri
      But why I always hear about Microsoft layoff every year? Never heard of layoff in Facebook or Google.
      Oct 25, 2018
    • Microsoft DOyu71
      Because people are idiots on Blind. Layoffs have literally nothing to do with the viability if the company either. The ones that have happened (very rare for engineers) are either due to redundant or obsolete teams or performance. Most people in the first category end up in a different role at ms anyway.
      Oct 25, 2018
  • Amazon Gjdyveycc4
    Google, MSFT and Amzn have survived recession multiple times and right now they are in their peek. So they will be able to survive.

    FB could have survive if they hadn’t self fucked themselves multiple times.
    Oct 25, 2018 0
  • Microsoft Rnrhruhxbb
    Microsoft will continue to grow - businesses moving to the cloud as opposed to maintaining their own data centers is actually a cost-savings measure.
    Oct 25, 2018 0
  • Google / Eng shivalinga
    No Eng layoffs here in 2008 I believe
    Oct 25, 2018 2
    • Google AI First
      There were also 90% fewer employees then.
      Oct 25, 2018
    • Nielsen / Eng
      iamnot

      Nielsen Eng

      PRE
      Google
      iamnotmore
      That is insane
      Oct 25, 2018
  • Indeed / Eng
    Job4U

    Indeed Eng

    PRE
    Adobe
    Job4Umore
    During recessions or periods of economic uncertainty, consumer discretionary spending is curtailed and doesn't bounce back quickly. This will impact AMZN's retail business immediately and will eventually impact their bread and butter, AWS, when consumers begin cutting back on services and products that vendors run on AWS. So we may very well see another "Will the last person in Seattle please turn off the lights" sign again however exaggerated that may be.
    Oct 25, 2018 2
    • Amazon / Eng your dad
      Actually during previous recessions Amazon has seen growth in the retail space. Customers look for cheap and convenient alternatives which fuels Amazon's marketplace. 2008 Amazon did well.
      Oct 25, 2018
    • Google AI First
      @yourdad AMZN was on a different part of the growth curve in 2008. It's possibly more sensitive to a downturn now that it's so dominant.
      Oct 25, 2018
  • Uber / Eng
    sight

    Uber Eng

    PRE
    Facebook, Cisco
    sightmore
    The companies on your list are bellwether cash cows and have weathered downturns before. Apple has > 250 billion in CASH on hand. They can safely survive a depression with that amount of moolah.

    The companies to watch are the ones without large cash reserves.

    Uber, Lyft and others in the gig economy will be interesting to watch. Supply could increase as rates drop during a recession. People will sign up to drive to make ends meet while riders could hold off buying vehicles in order to keep as much cash on hand as possible (which is why the big automakers suffered during the last recession and needed a bailout). Time will tell.
    Oct 25, 2018 2
    • Jodel Knpb12
      hi
      Oct 25, 2018
    • Uber / Eng
      sight

      Uber Eng

      PRE
      Facebook, Cisco
      sightmore
      Hi
      Oct 25, 2018
  • Amazon / Eng DingDong22
    All of those companies are doing extremely well and would have no issue surviving an 08 magnitude recession. Layoffs might happen, but the companies aren’t going to fold.
    Oct 25, 2018 0
  • Airbnb lalalul
    Gig economy! And Airbnb.If recession happens again, people would seek other source of income. Recession attracts tourists in a country to do shopping as they can spend more and get more value than bef recession
    Oct 25, 2018 1
    • Amazon hehehehehe
      Only if there are people spending on vacations.
      Oct 25, 2018
  • Twitch daytrades
    lol, holding on to old iphones. just wait until apple earnings.
    Oct 25, 2018 1
    • Uber / Eng oOBb03
      Apple and Samsung phones have planned obsolescense. Blackberries lasted for 5+ years, and the last recession did kill them for it.

      Any phone with OLED displays instead of regular LCD screens will be useless in short time, for example.

      People will need new phones.

      Same with new Macs due to keyboard issues.
      Oct 25, 2018
  • F5 Networks / Eng 1u2ir8v3f7
    We will be.

    Disclaimer:
    If we fight and win our current cloud battle.
    Oct 25, 2018 2
    • Amazon / Mgmt Seattle111
      Spoiler alert: you won’t. :-(
      Oct 25, 2018
    • F5 Networks / Eng 1u2ir8v3f7
      Spoiler alert: we have a chance and we are working hard for a pivot. And looks like we might even make it.

      Let's talk in an year.
      Oct 25, 2018
  • New / Other
    HDCT

    New Other

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    Google
    HDCTmore
    All the lending companies are screwed
    May 30 0
  • Microsoft Uhdhd
    Amazon’s big success was manipulate stock price and use the stock holders’ money to pay. They hire negative-valued managers with the totally wrong direction of critical business. Politics are intense and people with high tech skills left. Seattle times said they are planning to open more GO stores. What’s the cost of GO stores? Why do we see more Amazon people in the store compared to customers? Why do these stores open 24 hours if their technology really works? Is the purpose of GO store just to make the stock bubble bigger? Can a real tech company rely on stocks? Amazon bubble has to go away. Otherwise this will humiliate people’s intelligence!
    Oct 26, 2018 0
  • AMD
    5nm

    AMD

    PRE
    Intel
    5nmmore
    Apple held up well in the last recession, and so did most of the companies on your list.
    Oct 25, 2018 0