The U.S. Federal Reserve raised the price of money once again yesterday. Investors expected the move, but shares dove after the Fed declined to tell investors that it intends to slow the pace at which it raises interest rates in the future, as some had hoped.
While shares of many U.S. companies fell in the wake of the news, tech stocks took a particular whacking.
Then a few tech companies reported earnings. You have to feel for them to some degree — reporting earnings during a down cycle for your sector right after market conditions just became more difficult is not the stuff of CEO dreams. The opposite, really.
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But the earnings news was not all bad. Despite a weak advertising market imperiling the Snaps and Metas of the world, and in contrast to slowing cloud growth more generally, there were a few green shoots amid yesterday’s earnings reports that are worth our time.
Why? Because when we see public market investors react warmly to smaller-cap tech companies’ results, we can get a vibe for how unicorns might be valued if and when they do go public. Robinhood, the consumer trading platform, is up around 9% this morning after its own earnings report, worth around $10 billion. And later this afternoon, Coinbase will report results.