Economic 'Category 5 storm' brewing in 2023, market expert warns

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Wedbush Securities managing director Dan Ives predicts more layoffs in the Big Tech sector as the U.S. macroeconomic environment prepares for a 'Category 5 storm.'

Investors and companies alike are preparing for a macroeconomic"Category 5 storm," Wedbush Securities managing director Dan Ives said on"Mornings with Maria" Tuesday, January 3, 2023.Look, a lot of Big Tech, they were spending money like 1980s rockstars. And I think that really shows. Sometimes they were increasing 15, 20% per year.

I still think it's a 'rip the Band-Aid off,' still some more headcount cuts. We think potentially another 8 to 10% headcount. You look at what happened with Meta, and that's a good example. Once Zuckerberg finally read the room, cut in terms of what he needed to, stock ultimately lifted.

 

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