Carrington Clarke

And at a certain point, some of these things, so much of these valuations are about the future.

Of course they are.

They're about the potential because these are companies that are on the forefront of AI in particular, of technology, of what it could do, what it could unlock.

Some of it won't work out.

Well, Apple famously spent about 10 years building an electric car and then didn't.

These companies do make choices to get into markets or not, depending on the competitive landscape.

I think one of the interesting things about this period compared to different tech booms that we've been through is that a lot of these companies, the majority of them, are making money.

They are tangibly making money.

It is not like we have had in other tech booms

where they're boasting about the fact of how much money they're losing, but the potential is there.

They're trying to turn a ship around.

They're trying to build a market.

They're trying to build scale.

They're doing all of those things, but even as they compete, a lot of them are making substantial profits that gives investors some more comfort that they will make it, that the future is bright in these ones.

It's going to be a fascinating period this week as we see what happens.

Already some impacts as they've made cuts and changes to their workforces to try and deal with this.

Well, investors are sickos, and they love announcements of job cuts because it reduces the amount that companies are spending.

We've had really big ones.

Meta says it's going to cut about 10% of its workforce.

That's about 8,000 people.