Why Big Tech Is Collapsing | Asmongold Reacts 

The problem with most of these organizations is being top heavy, too much management and not enough people actually doing work. Meetings about meetings, impromptu meeting about useless stuff etc

It's not collapsing, it's getting back to the pre-pandemic levels. They made tons of disposable money during that time and now they can dispose of the cash and staff alike. They won't lose, not yet at least.

Here's my personal experience. We had decided to get a minority hire sales director who knew nothing about our industry or knowledge of how to make appointments with C-level tech leaders in large businesses that did over 1B in revenue. As a result our sales team suffered, and instead of getting rid of the director who made 200k, we got rid of 4 BDR's who made 50k each, who were actually doing things (setting meetings with prospects). Middle management can quickly destroy an organization.

These companies been overvalued for years now. Its almost like everyone is in on the joke.

Moon- “anger and fear keep people engaged” Also Moon- makes every video on his channel capitalizing on that same fear

The video misses the part where the Repo markets pumped BILLIONS of interest free money into the market weekly during Covid. And now, that money is being cut back and interest rates are rising which is why 2020-2021 had all-time high records for the stock market and now 2022 is having a huge drop off. The rest sounds nice but you have to ask -- Was there a reason these companies increased 2-3x the past few years?

No king rules forever...

I think it’s the active disregard for the customers who made them what they are today that is finally ruining them.

As a parent myself, I can assure you, we are all terrified of social media. We struggle with what we should do. We're the first generation of parents than have to deal with this shit. My parents, now the grandparents, don't even understand what I'm worried about. They tell me I'm freaking out over nothing, that it'll be okay. Regarding what to do: If you simply take all social media away, your kid will be an anti-social loner, but if you allow everything, they'll be easily manipulated into all sorts of trouble. The trick is finding the middle ground, how far do you allow your kid to go, etc. And I'm saying this while still not knowing what the answer is. Personally, I think kids under 10 shouldn't be allow on social media at all... Once they get to 11, then things get complicate... My daughter is still little, only 7yo, so I still have some time to figure it out. But my wife and I have already chosen a school based on the fact that they don't allow smartphone in school, period.

Growth companies have traditionally had tough times when interest rates are raised. Since valuations of growth companies are made based on their anticipated growth (which was often achieved using debt), when interest rates go up, it's expected that companies will face headwinds in the short term. That's why valuations have come down. I wouldn't read too much into it. Twitter and Tesla notwithstanding, tech companies are still making plenty of profit. They are just trimming down the less profitable parts and going lean in anticipation of lower expected growth in the coming years.

Big tech companies keep having issues because they keep making blatantly bad decisions and refuse to pull out of a bad choice. Meta is the best example of this. If when Meta was first mocked they backed off their stock would be substantially better off. Not the only reason for these issues of course but it is a massive reason

“It’s over….” is becoming the new “SO EPIC!!!” of 2010’s.

When he said people believe in the idea and not the product I felt that.

Positively surprised that he made sure to talk about data having to be adjusted for inflation. There's a book called "The Competitive Advantage of Nations" by Michael Porter which was written in the 1980s. It does a very good job of explaining the interdependencies between companies, governments, markets and random events. There are also many great books on decision theory and consumer behaviour in general, which explains a lot about why businesses have changed their business model and how society as a whole changes through behavioural trends (basically informing random events). You could also look to resource theory for that, but all of this is in general a very important and very complex topic that will affect and has affected generations.

This meme of "The west just didn't understand the negative side effects of social media until it was too late" is insufferable. As children, we wrote papers in school on the implications of social media back in the early 2000's and most everyone - in my class at least - understood what was going to happen. This wasn't an accident; it's a matter of design. Coporations simply don't care if they are making money by destroying society.

My sister picks grocery's for Walmart. They are actually investing more employees into picking items for online orders than people into cashiering. They don't want you in the store anymore, they want you to buy it online and wait in the parking lot, it's almost like they would rather be warehouses. Very frightening to think that one day we might not be able to access food without technology.

Its a good time to start appreciating other things in life, things that we forgot, things that were hidden by social media and big companies.

not collapsing. just going back to 2019

Good vid, and good coverage bud. 👍 It went a bit deeper than most I've seen so far.

At the store I go to a 18 pack of large white eggs went from .89 to 4.29, and it's still going up.

This guy is like the exaggerated truth in yt form.

I cant enjoy youtube without asmongold

As someone that works for one of these well known fortune 500 companies its not really a sector thats collapsing. Sure there have been large layoffs due to bloat and over hiring during pandemic ... in other tech companies they were just going after frivolous ideas and started cutting out all those teams. Thankfully for me and my role in tech its very unlikely myself or my team would get cut unless the entire company went under. My company already went through a massive layoff and my team was unscathed as we are so small and touch so many areas needed by other teams. Even then without trying I get so many random recruiters on linkedin trying to hire me from other tech companies I'm honestly not worried about job security if I eventually get laid off one day anyways. Obviously its not all 'secure', some tech companies will implode while others will thrive once interest rates go back down and we get out of this recession phase. But I've always been an absolute hermit and frugal person so I still live dirt cheap despite the 'standard of living' most in the tech sector at my pay grade live. I mean I watch Asmonggold videos for crying out loud lol. I only care about video games outside of work for the most part lol, I ain't got any expensive hobbies really once the pc is built or consoles are bought, I barely even buy new games becasue I don't trust the AAA game industry anymore lol

Why is everyone missing the fact that during pandemic there was a huge bubble due to free money? Compare things with pre-pandemic levels if you want more relevant data. Finally, evaluating a company solely on market cap is stupid... No company is actually worth their market cap. Market cap = current stock price x no of shares You could have a sharp increase on stock price driven by a few people, that doesn't every single share owner values their share at the same (peak) price.

VC's are all about what is the potential. If you can convince them the upside is big enough, they are then more willing to bet on details like does it actually work, somehow magically sorting itself out.

As someone who works at an Amazon warehouse it’s not the warehouses laying people off, it’s the AWS tech side getting hit

We are not creating tech to benefit humanity. Tech is thriving for pure profit. Not to mention things are more expensive and salaries have not been increased to compensate. It is all a downward spiral.

Nobody in the UK is getting regular pay rises any more and the price of everything has tripled in the past 12 months, the whole country is fucked

The Chinese government is litteraly the one that started regulating their own companies the most over the past few years so Idk w the guy is talking about in the video they were litteraly dismantling the tencent monopoly on the music market in China, when there was supposed to be a merger of the two biggest streaming platforms in China the government stopped it, to prevent a twitch like monopoly It's also interesting how China is definitely the most competitive smartphone market where they have many options for good phones unlike in the US, it's also the most competitive market in the EV space, Tbh the Chinese government is still not doing enough to regulate the companies, the competition is just insane over there and many times it's also really underhanded to say the least, (especially when Tencent is trying to unsuccessfuly shoot down mihoyo), And how would TikTok being propped up by the government help, people are using TikTok more not because China told them to but because they like it, TikTok is growing because they have a product that people currently want, there is no way the Chinese government is somehow magicaly propping up demand for TikTok, like how the fuck would they do that?

I dont think its collapsing, its just no one makes new good products anymore in those big companies. they make exactly the same thing over and over and charge more, like intel did for years, and might start doing again judging by their new products.

They've just become too desperately greedy. Starting to put fast money over any possible long term survivability. That together with the myth of 'Too big to fail" most of them have convincend themselves of.

Getting rid of kids on social media, or at least so free of review a social media as it is now, would be amazing. You hear the dumbest things every single day, the effects as you said are pretty harsh. Hell my sister said she would not let her daughters have at it till way older.

I'm a forklift mechanic and work in the field. Many places are mostly autonomous already. It's scary man.

uber was dirt cheap in London compared to the black cabs, underground was cheapest, but most lines stop around midnight.

It isn't collapsing fast enough.

This video completely ignores so many fundamental economic principles to make the situation seem more dramatic than it is

The 13 or older is contract law, the courts ruled that under 13 it's not possible for you to sign a contract. It's not related to "protect the children from what's being shown/talked about".

Just a comment on the uber portion. In Toronto uber can either be double what a taxi would cost or half of what a taxi would cost but it entirely depends on the time. Peak hours are price spiked and other times are often cheaper than a regular taxi. Whenever we need a ride we always check between uber, Lyft and taxi and pick what's most reasonable at the time

I got once ban from FB because my meme offended someone lol

People also having to budget more bc housing and food cost more now than ever in my life time

Food prices here in germany in stores has risen between 50-120%. Its kinda crazy. Like a pack of noodles 500g own brand from discounter was 39 cents before covid, now its 99cent and probably keeps rising

15:35 bro sounding exactly like AL from Al's toy barn, from Toy Story 2, looking for the remote to the TV.

I am trying to mentally prepare myself for this video, as someone who came from a really poor family I decided to go into debt to have a chance at gaining employment with one of these big tech companies. 3 years later and now this shit! lmao all my life I felt like I had bad luck but good thing I am a very optimistic person. Although that sometimes comes back to bite me in the butt. Anyways here we go 😢....

It’s well known that the tech companies way over-hired during Covid which has lead to the current layoffs.

It also has to do with people slowly waking up and realizing that big tech doesn't want the best for you . Also the fact that they've been proven to be completely biased

people do not understand that taking on debt increases firm value (LBO for example) because it commits firm to making future interest payments..

Dude the Walmart in tulalip Washington has like 50 self checkout spots and like 10 at the most employee checkout lanes when only like 1 to maybe 3 open ever

Meanwhile my META stock is up a massive 54% from last month lol

I mean, we all know why Twitter is collapsing.

As long as it works, nothing has collapsed.

also a big part of it are the really big players, like blackrock and similar. They single handedly decide the future of a company if they feel like it's worth doing.

The reason eggs are so expensive is because there is an avian flu that is wiping out all the egg laying chickens.

At 28:20 as someone I'm that field I don't think that's the case. Automation will cut jobs but certain jobs would cost to much to automate. Example was an autoloader for a trailer was running and such a huge negative that they could pay every employee in a building off of just the maintenance fees.

Collapsing? My holdings went +70% the past 6 months.

Perfect..let the celebrations begin..

I don't think we are going into a recession, I think we've been in one and are now well on our way to depression.

Self checkout is not computers replacing employees ... it's customers replacing employees. If they could figure out how to get the customer to stock the shelf, they would.

I'd say by far the best way to prevent kids form joining something would be a 1 time 1 dollar charge under a ULA of I am an adult and am legally responsible for it to not be in a kids hands, far from fool proof, but it's a major layer of security compared to a check box.

I'm glad this guy's channel is called moon because he always presents factual information and then draws conclusions from it that can't be based on anything earthly. This video is rare form for him where he kind of makes sense 🤣

Truly scary times for us here in tech. Crossing my fingers and hoping for the best.

“Where a bunch of people are dying and stuck inside is good for you”. 😂😂😂

Grocery prices are disgusting. I buy 3 things from Publix and it's $30. I started buying from Aldi now since it's so much cheaper. Inflation happens but companies are definitely taking advantage of it.

ya i do a job getting prices for things and eggs went like from 1.50-2.00 to like nearly 6.00 now.

I've been in a shipping wearhouse for shoes and they have robots that bring the boxes to the correct shelves, and the workers just have to put the boxes on the shelves

We own a small software company of around 20+ employees. Typically, we hardly get anyone applying for internships or the jobs we post because we are quite small and fairly niche in what we do. We would be lucky to see more than 10 applicants a month. However, starting around October, the amount of job applications we we're receiving skyrocketed to 100+ a month. We we're getting applications from people who've only taken a 6 month programming course all the way up to former Google and Facebook employees. And just for a reference, the last time we we're getting this many applicants, was during the dotcom bubble. I don't wanna go as far to say that a market wide collapse is coming. But like Asmon says, when you have enough points on a graph...

Just got fired from an Amazon center, went from 1.2k people to 300 in one day. Was absurd. They dont have less job to do, and its not more automatized, they just want to do the same job with 1/4 of the workers.

"Go on a spaceship and see for yourself". My spaceship is broke atm, anyone?

keep in mind, there's only so much growth a company can hit. it's called plateauing.

In Japan, 12 eggs range from $1.50 to $3.50 - that's up from two years ago when the range was $1.10 to $3.25 (I eat a lot of eggs.).

Games are collapsing... I been a HUGE gamer for about 30 years and I recently slowed down to almost a halt. Nothing is finished anymore. If I'm going to spend my money on something unfinished I might as well be the one to build it... Race cars are my new obsession. Why? Because I can guarantee I'm getting what I paid for and then be able to admire my own progress in life.

I have worked in IT as an engineer for big tech for over twenty years and survived the dot com bubble in the early 2000 and 2008 great recession. While some of the opinions from Asmongold dropped here are correct there are quite a few that are inaccurate that also miss the larger picture of why we are in this space. The idea most believe this is another example of corporate greed or incompetence is intellectually dishonest that misses all the warning signs this was coming in the last two years. 1. COVID having everyone at home, especially in states like California had a real impact on social media and video game use drastically going up. Some tech companies are staffed up to keep up with demand. Some did not. Most tech companies staffed up with seasonal or contractor workers during this period. Most layoffs like Amazon are seasonal and contractors are being let go. This happens every year around this timeframe it is just much larger due to changes in the current economic climate expended in 2023. 2. The great ressenation. This period of employment was caused by demand due to workers either retiring early from the lockdowns or moving out of state to find work that is not shut down. This created a large demand for positions to be filled. The few took advantage of higher salaries as many employers increased salaries to just retain workers. 3. Supply chain. Since many areas were locked down the combination of the lockdown and high demand for workers took a real strain on the supply chain. California for example where I live in Orange County for months we could see over three dozen cargo ships from the beach in international waters just waiting to dock at the port of Los Angeles to offload and then trains and truckers needed to move the cargo inland. It was not uncommon for shipments to be delayed at the port for over a month before they moved. This creates a situation of high demand but low supply that impacts food, electronics, and everyday items. The port of Los Angeles handles over 40% of the nation's imports/exports from this one location and with a state that had one of the most drastic lockdowns that went on for almost two years, it had a major contribution to the nation's supply chain issues. 4. Electronic shortage. With everyone working from home and the long-term lockdowns that saw an increase in office material and entertainment demand, this caused a serious condition that impacted supply as most of the supply is manufactured in China or Taiwan. For this reason and the increasing tension between Taiwan and China is why several tech firms are already building or looking to invest in manufacturing microprocessors and other electronics back in the US. Demand cooling down with supply starting to return to normal was also impacted with the Crypto bust last year that added to the supply problem. Now that everything is cooling off they do not need as many workers. 5. Interest rates. A major reason for the layoffs of anything not really discussed here is due to Biden's economy. The large out-of-control inflation from putting too much money into the economy fueled by record-low interest rates created a very hot economy. Housing for example in Orange County was being sold before it even got listed on MLS. That was how hot the market was. Changing interest rates even .5 of a percent is enough to make and break people from taking a loan. Businesses are not immune as they get their own interest rates to keep capital flowing. Once that dries up as loans are more expensive this option is no longer on the table. Add in the current recession as the market cools then we will see demand cool off. These two reasons are why companies are trimming their workforce. 6. Over privileged tech firm workers. Yes while I work for one the tick tok videos of employees showing a day in the life of "insert tech job here" for many tech companies in marketing and sales is spot on on the amount of perks received but little work is done during the day focusing more on napping and snacks. As an engineer we do not have that kind of time so naturally these companies even Twitter laying off most of the workers in these departments and other operational departments like HR, Sales, Ops, etc. will face a majority of the cuts and most of the employees I saw leave were the ones were under performing. Not all are under performers as in some cases it could be entire departments gone with some being very good employees that got caught in the crossfire.

There is a small group of rats living under my house and i feed them cheese and one night i could hear them clapping for me, cheering me on in my sleep like im a king to them.

My phone once fell down and then got stuck inside the table legs foot which was hollow from the underside - found it like 6 years later.

Murder is the unlawful premeditated act of killing. Murder is always referring to illegal killing.

is this Moon's channel?

It's like focusing constantly on the icing instead of the Base of the cake. Or building a house on sand instead of remembering to maintain the foundation. It's the hubris of Greed.

"Company lost X amount of money." - No. Nobody is losing liquid funds. Only their perceived value goes down. There is some kind of scandal, bad press appears, Aladdin kicks in, EGS rating goes down, investors panic sell. That is it.

u know its a bad recession when we've been in it for close to a year and asmon says its just the beginning lol

yea but also there is a finite amount of accounts you can make on netflix, amazon and so on...

I went all these years not knowing that asmon has black metal knowledge.

Hey Asmon, love the channel. Nothing below is a criticism of you, but a few quick corrections: 1) at 2:48, he mentions the margins for these companies being incredibly tight. This is a sweeping generalization, and in most cases is just wrong. Many of these companies were cash negative (i.e. bleeding money, e.g. Twitter, Uber, etc.) this has gotten better recently but most of the tech companies like facebook, amazon, and tesla were all hemorrhaging cash for a loooong time. For the others, though, this is untrue in the opposite direction. Most of the big tech companies (minus Tesla) have crazy good margins. Software is something you make once and sell forever (plus or minus a few updates). This is unlike a bakery which *actually* has tight margins (i.e. for every roll of bread you sell, you are spending on the ingredients, storage, etc.) 2) at 4:37, he mentions that many of these companies were getting flak for censoring certain posts that dont fit the tech companies' political views. This is objectively true, but has played little role in these companies earnings. The bad will that these companies have received does not really affect their bottom line. Truth Social, Mastodon, etc. are blips on the radar to most of these companies. People don't understand this in the states, but there is effectively no competitor to facebook as far as advertising goes with social media. It doesnt matter who facebook censors, they are a cash machine. 3) at 7:59, he mentions that tiktok has the chinese government to back them. Again, this is true, but tiktok does not get impunity in other countries because they have the backing of China. There have been numerous attempts to add regulations to tiktok, and they will continue. The current status quo does not seem viable for the foreseeable future (as it pertains to tiktok). This point he made seems largely speculative at best. Tiktok is indeed a problem, but I think that the US recognizes that it is a legitimate threat to national security. We can only see how this pans out. 4) at 12:02, you mentioned that valuations are generally about 5-10x annual income (impressive that you knew this off the top of your head). It is about 14x (or has been for a while) in most sectors right now, however this ratio (PE) is typically not as effective at assessing a companies' value as the PEG (some people may disagree) but effectively the second ratio takes into account growth (hence the "G"). As such, the PE's for many of these companies (often 20x or more) were actually not AS crazy as they may have sounded. With that being said... (stay tuned, Ill come back to this). 5) There were many companies which were not cash-flowing which received tons of investment money which ended up collapsing. It is important to remember that these companies are not necessarily representative of the FAANG+ companies (facebook, apple, amazon, netflix, google, etc.) This is part of the problem with referring to all of these companies as "tech companies". Tesla isnt really in the same business as "wework" (or whatever it was called), much like how apple is not *really* a competitor to facebook (at least historically). Most of Apple's income comes from the iphone, airpods, macs, etc. i.e. hardware, as opposed to Facebook whose income is almost exclusively from ad revenue. All of these non-cash-flowing companies were speculative buys. These companies constituted the "bubble". Google, Apple, etc. are not really in danger. Most of them have little or no debt, and about 20x their debt in cash. In other words, they could pay their debts 20 times over without selling additional shares, and even if they didnt sell a single unit of whatever they sell for the year. 6) You mentioned a few times that regulations are playing a role. This is somewhat true, but does not have nearly the impact that people think it does. (See below) What we are seeing with the big tech companies can be explained pretty simply: people throw money at companies that are growing (see: Gamestop), and will run for the hills at the first sign of danger. Case in point, the first massive hit to Meta (facebook)'s earnings was when the news broke that they had *slowing* subscriber growth. They didnt LOSE users, they were still GROWING. They have over 1 billion active users worldwide, they are banned from China, and most of Africa doesnt have the infrastructure to offer regular connectivity to facebook. Of COURSE they are going to have slowing subscriber growth. They are literally running out of people to join. That is not necessarily a bad thing (for meta). Now consider what happened when the news came out that the EU wanted to ban facebook from sending data overseas (to the US) until they improved their security measures. One of these events had a 40% impact on the share price, while the other was about 10%. Want to guess which is which? The point (coming back to #4 and #6) is that most people dont invest based on fundamentals of a company. They get manic when they hear good news, and they panic when they hear bad news. Like Bezos said, the share price is not the company. Meta is seeing some problems with Apple now trying to encroach on FBs business, and with decrease in spending on advertising (recession) but take a guess whether or not Meta's earnings have dropped 80% like their share price dropped. I think this video (the one you are reacting to) generalizes too much and isnt really painting an accurate picture of the landscape (as far as I can tell). There is too much nuance to a lot of these things. With that said, im not a shill for big tech. Amazon commits human rights violations in the US, Apple uses slaves to make iphones, and Meta has committed war crimes. I just dont want anyone to think that all of these businesses are about to collapse because interest rates are going up. It is a case-by-case basis, and I think that it is way too soon to speculate on the fate of most of these companies (especially as a collective). Love the content, and its always a pleasure to watch you Asmon. Much love.

It's just that the times are changing and tech companies are going in different directions. AI, EVs, semiconductor manufacturing, hardware IPs are all growing. Social media has just hit a plateau and as public companies, they have to layoff people to keep growth for investors. They will survive for sure.

the way amazon treats their workers, I'd hate to be a robot

Age verification will one day be done by AI software that reads ID cards. You might also see a large tech company in the future that creates verification "tokens" of users based on certain credential data. For example you might sign up with your email and submit government ID to the AI, which is then verified. The ID information isn't stored, instead they store your name and credential/email and other minimally necessary details. other companies they (Meta, Google, Discord, etc) call up verification from the database to confirm the associated credentials are legal age. Websites/apps that use this service then no longer need to have a "verification" check box.

I use my desktop for any internet and leave my phone at home. I really feel better every day.

@7:25 is that Tom Cruise?!

i have a friend who works at Amazon and they just gave out raises to managers after the cuts. From 50k up to 65k/year

cutting corners is concerningly costly so be cautious

Tim Burton’s Charlie and the Chocolate Factory is starting to scare me for the future. I don’t want to end up like Grandpa Joe!

I went to Costco and they were out of stock for eggs. What the hell is going on

The problem with robots is, they don't buy stuff... Paid workers do.

The biggest lie they tell you in big tech is that your job is secure. The truth is that tech has been this disgusting cycle of overvaluation, overspending and mass layoffs every 5-10 years since the late 80s (or at least, so says everyone I've worked with over the age of 50). I had more job security when I was a gas station cashier and that's why big tech is failing. The economy is receding so they don't look good to investors, their products/services are floundering so they don't look good to customers and they provide no job security so they don't look good to employees. It's the perfect trifecta of failure.

Chinese companies can always claim that they are not in anyway cooperating with the government, which is true. It's just that the law gives the government full power to investigate, meddle, and direct companies when they choose to. This is the model of Socialism with Chinese characteristics AKA authoritarian state capitalism.

Asmond: League is owned by China Every League Fan:.... Your owned by China

Amazon is firing people because Peak season is over and they cant afford to pay 19/hr for a 1/4 of the volume of sales. happens every year. I was an early 2021 cut and it was obvious why. Less orders, less workers.

"Why Big Tech Is Collapsing" This is a 2 second topic: It isn't.

It's post-pandemic. People spend less on tech when spending more on travel. Combined with recession, it exacerbates the issue. Silicon valley isn't going anywhere lol. Going from bloated to tightened-up doesn't mean they're going out of business, it means they aren't hiring endlessly.

29:25 I work for a company that does exactly this

Regarding social media; I'm a parent and absolutely will not allow my child onto social media. I'm not totally OK with it being a government mandate or law, but as a parent, social media is a threat/danger for a minor for a lot of reasons.

pretty sure eddie ibanez is george santos