Tech stocks are not performing that well. Bill Gurley says we're at an inflection point, and investors are going to start looking at profitability instead of growth.
Most of the unicorns in the $1B+ club have gotten their valuations by rapid growth, though not necessarily the profitable kind.
If things take a turn for the worse, and funding becomes hard to come by, which unicorns will have the hardest time getting to profitability?
The valuations were a fiction in the first place. A company like Uber with a $40 billion valuation could be replaced with an app that could be developed of $1 million and a business plan that paid the drivers a little more.