Will companies go bankrupt?
Novice about the industry. Many companies are suffering from low stock price these days. Market cap goes down and down, and layoffs ensue as investors pull out. What happens to the smaller companies if the trend continues? Can anyone give me examples of the probable fate of these companies? Do they just float around a low stock price and live on weakly for a while until they just disappear entirely or are bought by a bigger company (a la Yahoo)?
Tech companies don't often go bankrupt. Instead they get bought for pennies by other tech companies that then fire most of the original workforce and either use the tech or redirect the traffic for their own products. If you work for the company it's not much different than if it went bankrupt since you lost your job and the stuff you worked on goes nowhere.
More likely some companies will be acquired by symbolic price rather than go full bankrupt. Imagine Snap bought by Google or Meta
They just disappear. Remember Groupon? Yeah not many do.
And then 10 shitty clones will appear from nowhere. Kind of like the Hydra from Hercules which regrows heads faster than they’re cut off. Except worse.
Groupon is still literally awesome. They're not rolling like they used to, but y'all sleeping on it.