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Virus Outbreak Gives Tech Darlings a Harsh Reality Check

Associated Press

   Just as the coronavirus outbreak has boxed in society, it's also
   squeezed high-flying tech companies reliant on people's freedom to move
   around and get together.

   Since the beginning of March, for instance, Uber shares have lost a
   quarter of their value. Rival Lyft is down 28 percent. Over the same
   period, the S&P 500 has fallen just 10 percent, even with wild swings
   along the way. The picture is even less clear for other, still-private
   "unicorn" companies once valued at more than $1 billion, such as Airbnb
   and WeWork.

   "What market pressure will mean for all companies is survival of the
   fittest," said Allen Adamson, co-founder of the marketing firm
   Metaforce and a business professor at New York University. "If you are
   going into this storm in a bad shape, it's not going to be pretty."

   Just few weeks ago, Airbnb was poised to cash in on a soaring stock
   market with its highly anticipated public offering. But with the market
   now reeling and few people looking to anywhere but home, Airbnb is
   reportedly racking up millions of dollars in losses while fending off a
   backlash from hosts who rely on its service to survive.

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