One analyst marvels at how bad it is, as he assumes it will get worse:

“Right now we are seeing [tech] stocks trade at single-digit multiples on EBITDA and low double digits on earnings, which is kind of unheard of from what we have seen the last decade for tech,” Jefferies tech analyst Brent Thill said on Yahoo Finance Live (video above). “Our belief is we are not done with the pressure on tech. We still think there is downside relative to historic multiples.”…

Just take the major sell-off in one of the hottest tech trades of the past decade: the FAANG complex, which is comprised of Facebook, Amazon, Apple, Netflix, and Google. All five components have shed more than 17% year-to-date, led by a nearly 69% crash for Netflix.

Musk’s takeover of Twitter has begun to reveal the tech stock business models may not work exactly as the market has ben conditioned to believe over the last few decades. They may be considerably less profitable than it was assumed, there may be more fraud within the system, and it may have been getting supported by investor enthusiasm. If the investor enthusiasm wanes, yet more fraud may be revealed, and it could swing everything in the opposite direction.