The Four Horsemen of the Tech Recession

It seems that the tech industry is facing four major challenges, which the author calls the "four horsemen of the tech recession".

The first horseman is the COVID hangover, as COVID has had a significant impact on the tech industry, accelerating investments in cloud computing and e-commerce, while also causing companies to question their infrastructure expenses as they enter an economic downturn.

The second horseman is the hardware cycle, as consumers are less likely to purchase new consumer electronics when they already have a new one.

The third horseman is the end of zero interest rates, with investors discovering that the cost of capital input in their equations can be something other than zero, and the price they are willing to pay for growth without profitability is falling through the floor.

The fourth horseman is the ATT recession, which is arguably the most apt, as Apple's App Tracking Transparency (ATT) initiative has had a significant impact on the tech industry, causing companies that rely on performance marketing to see their revenue growth crash, even as companies and products that were isolated from its effects, such as Amazon, Google, and Apple advertising, have seen growth.