What matters for our purposes is that with a good chunk of the Q2 earnings cycle behind us, software companies are not only holding onto their gains from earlier in the year, they are managing to add to them, albeit modestly. Of course, valuation expansion during earnings season could still lead to gently falling multiples; as companies grow, if their shares gain value at a slower pace, their price/sales ratio can lose ground.
Regardless, for our purposes it’s notable that recent public market gains are not dissipating. Tech valuation boosts have helped major American indices regain ground lost early in the year, and Q2 earnings were a possible threat to prior progress. So far earnings-related dents are thin on the ground.
Hi guys, I'm a software developer working in a 1.5 years old tech product startup. I joined the company on the very first day of the company when there wasn't even a solid idea of the product. It was only me and the founder for over 10 months. That makes me employee 1 but I'm not a cofounder. We don't have any investment yet. I handle most of the tech except some parts. So far the founder has not given me a clear idea of what I would be getting out of this. I took a pay cut to join here and I'm still underpaid for my experience. I would earn at least 60% more of my current pay if I were to switch company right now. I'm not concerned about earning less. I'm concerned about the result of all this. Could any one who has gone through a similar path or founders advice me on how to avoid getting cheated and what I should be expecting in terms of monetary gains? How does this whole process work? Should there be a written agreement or is verbal agreement till the company gets funded the way it's handled?
According to reports, the company signed a new strategic partnership with Sinodis, which is the biggest imported food distributor in the country. It goes without saying that the deal is a significant one for Beyond Meat, considering the sheer enjoyed by Sinodis.
Fortunately, we have made through the first half of 2020! However, the next half of the year looms with numerous questions about the global economies amid this COVID-19 pandemics.
Right now, the global stock market took a complete beating, but there is a popular saying in the world of investing – market crashes should be seen as opportunities to lap up quality stocks. This may prove right even now as well.
If you are a first-time investor (preferably looking for long term) and don’t want to be a ‘Robinhood trader’, then you are in the right place. While Tesla, Hertz, and others are trending, we tell you which European companies you should put your money on.
Adyen (Amsterdam, Netherlands)
Founder: Pieter van der Does
Stock symbol: AMS: ADYEN
Adyen is a payment company that allows businesses to accept e-commerce, mobile, and point-of-sale payments. With offices across the world, Adyen serves customers including Facebook, Uber, Spotify, Casper, Bonobos, and L’Oreal.
Spotify (Stockholm, Sweden)
Founders: Daniel Ek, Martin Lorentzon
Stock symbol: NYSE: SPOT
Spotify is a commercial music streaming service that provides digital content from a range of record labels and artists. The streaming platform is available on mobile device platforms such as Android, Blackberry, Boxee, iOS, Linux, MeeGo, Squeezebox, Windows mobile, and more. To date, Spotify is the most popular global audio streaming service with 286 million users, including 130 million subscribers across 79 markets.
ASML holdings (Veldhoven, Netherlands)
CEO: Peter Wennink
Stock symbol: SWX: ASML
ASML is the provider of lithography systems for the semiconductor industry, manufacturing complex machines that are critical to the production of integrated circuits or chips.
Takeaway (Amsterdam, The Netherlands)
Founder: Jitse Groen
Stock symbol: AMS:TKWY
Takeaway.com is an online food delivery marketplace in Continental Europe and Vietnam. With over 31,000 connected restaurants, Takeaway.com offers consumers a wide variety of food choices. The group mainly collaborates with delivery restaurants.
Teamviewer (Göppingen, Germany)
Founder: Tilo Rossmanith
Stock symbol: ETR: TMV
TeamViewer is a cloud-based all-in-one solution for remote access, support, collaboration, and desktop sharing over the internet. As per the company claims, TeamViewer has been activated on more than 2 billion devices and more than 45 million devices are online at any time. Founded in 2005 in Goppingen, Germany, the company employs about 800 people in offices across Europe, the United States, and the Asia Pacific.
AMS (Unterpremstatten, Austria)
CEO: Alexander Everke
Stock symbol: SIX: AMS
ams develops high-performance solutions for the most challenging applications in sensors, sensor interfaces, power management, and wireless. The company offers sensors (including optical sensors), interfaces, and related software for consumer, communications, industrial, medical, and automotive markets.
DISCLAIMER: Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on our website and wish to rely upon, whether for the purpose of making an investment decision or otherwise.
After a heated run, SaaS and cloud stocks dipped sharply during regular trading on Monday.
According to the category-tracking Bessemer cloud index, public SaaS and cloud stocks dropped around 6.5% today, a material blow to the value of some of the world’s most highly valued companies, measured by sector-averaged revenue multiples.
After recovering all their COVID-19-related losses earlier this year, SaaS and cloud stocks kept on rising, reaching new all-time highs with regularity. But earnings season is starting, meaning that the value of modern software and digital infrastructure companies will soon be tested against Q2 results — results that were recorded fully during the global pandemic.
To hear bulls — both private and public — tell the story, COVID-19 and its ensuing workplace disruptions have provided software companies with a huge boon. Namely, that customers current and future have radically changed their procurement models and will need more software solutions, more quickly, than they previously anticipated. (Stay tuned to The Exchange for more on this later in the week.)
The thought that there are more and better customers coming for SaaS and cloud companies made them relative safe havens in otherwise turbulent public markets; while other industries had uncertain demand curves, the thinking went, software companies were being pushed forward by an accelerating secular shift.
Today, however, the broader markets slipped from early-day positions of strength while SaaS and cloud shares dropped sharply. Prior patterns in investor behavior didn’t hold up, in other words.
Why today brought such sharp selling is not clear. No more, really, than reasons for prior days’ gains were clear at the time. Profit taking? Rotation to other sectors? Whatever you want to ascribe to the day’s declines you can make stick.
For our purposes here at TechCrunch, the dropping share prices of public software companies serves as an anti-signal for late-stage valuations in SaaS startups, and a general headwind toward venture investors making more early-stage bets in the sector. Of course, one day doesn’t change the game. But several days of sharp losses could begin to change sentiment, and days when shares of modern software companies drop by 6% are few and far between.
Earnings are next, but for many companies in the SaaS and cloud world, reporting their results just got easier. When expectations drop, everyone loses a bit of worry, right?