Software stocks give up even more ground

Published by
Peter Kavinsky

Quick blog here to update you on some pretty important movements in the market. Today, in a nasty day for stocks generally, shares of software and cloud companies took a pounding.

In numerical terms, the Nasdaq Composite lost 2.51%, per CNBC data. That’s a very bad day for a huge, critical category of publicly traded wealth. And then the Bessemer Cloud Index, our favorite method of tracking a more targeted basket of modern software concerns, tanked 5.45% during regular trading.

That’s a lot of deleted value in a single day. But because the declines come after the startup-critical index already endured sharp drops recently, it was insult to injury. Here’s the chart:

Image Credits: YCharts

You need to glean two things from this collection of graphed data:

  1. Software stocks have given back more than all their gains from late 2020, and have retreated more than 30% from recent highs. That’s pretty bad.
  2. Software stocks remain richly valued and are worth far more than they were at the start of 2020, a period of time roughly two years ago. That’s pretty good.

So things are not great, but also not terrible, for modren public software companies.

The issue that TechCrunch continues to track is how quickly — if at all — the declines shown above begin to trickle into startup valuations. We’re seeing some chop in the private-public market divide, where IPOs and direct listings try to carry companies from one shore to the other. But in terms of sheer startup fundraising momentum, you wouldn’t know that revenue multiples are taking a huge cut on the public markets. For most startups, it’s still heady days.

Source: Tech

Peter Kavinsky

Peter Kavinsky is the Executive Editor at

Published by
Peter Kavinsky

Recent Posts

  • News

fallen trees and flooded streets

Fallen trees, flooded streets and a closed metro station due to bad weather. This is…

2 mins ago
  • News

About 70% of housing and municipal service systems are ready for the heating season

About 70% of the networks and other objects of the housing and municipal services system…

4 mins ago
  • News

Bolanos believes that now it is necessary to clarify whether what happened in Medusa could have been avoided | Politics

Presidency minister Felix Bolaños mourned the death of a young man at the Cullera Medusa…

11 mins ago
  • News

Man shoots eleven people, police shoot Tate

A 34-year-old man killed several people in Cetinje, Montenegro. Among the victims are two children…

15 mins ago
  • News

The Deposit Guarantee Fund sells the assets of Zemelny Capital Bank

The Deposit Guarantee Fund (DGF) is putting the claim rights under loan agreements on the…

16 mins ago
  • News

Cambres Mayores resigned himself to the fact that he lives without running water for 22 hours in a row | Society

Nearly 1,800 residents of the city of Huelva in the city of Cumbres Maiores will…

22 mins ago