• Goodie@lemmy.world
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    1 year ago

    Interest rates are rising up globally, to fight global inflation, and the general feeling of a recession.

    This is having several impacts in several ways. Mostly it comes down to VC (venture capital) and lending money being harder to get.

    During the good time VC’s threw the net wide and invested in everything they could, knowing that only a select few would truly pay off. Well, it time for those investments to put up or shut up.

    This is further having an impact on stock market and public companies. Previously potential has been seen as king. Looking for the next big thing, having lots of users etc. Now being actually profitable and surviving is going to be king.

    Think of Tesla as riding this line nearly perfectly (and I’m no Elon fanboy). It rode the potential wave hard, it’s stock price soared, they were the first player in electric cars. They would have an edge on everyone! Then they started plummeting as markets saw the looming interest rates. Then they posted some profitable years, and are soaring again.