Connect with us

Hi, what are you looking for?


Why is the Tech Sector Losing its Spark?

While the technology sector has been a driving force for economic growth and most definitely an integral part of our lives in the past few decades, there appears to be a subtle but noticeable lean towards a decline in participation. This decline can be viewed from two broad perspectives: investor participation and talented workforce enlistment.

One of the most substantial indicators of fading participation in the tech sector is visible in the stock market. Players in the financial sector are showing withdrawal symptoms, pulling out of tech stocks. Despite the striking record-breaking performance seen by technology giants such as Amazon, Apple, Microsoft, Google, among others, the gradual recession from the tech industry is sending signals of worry.

Investor disinterest in the public markets hints to over-saturation and prompted by the fear that the sector has gradually become too hot. After years of pouring billions into the sector and watching it enjoy unprecedented expansion, it is becoming increasingly clear to wary-eyed investors that technology stocks have hit their peak and are ballooning into a bubble ready to burst.

The propensity to infuse finances into tech start-ups has also seen a considerable dip. While the start-up ecosystem has more or less thrived on bets placed by venture capitalists and angel investors, it seems investor confidence cannot keep up with lofty valuations and a lack of return on investments. The disappointing IPOs of Uber and WeWork, amongst others, serve as evidence of this trend, and have made investors tepid.

Another crucial angle to consider when looking at the dwindling participation in the tech sector is enlistment of talent. Tech giants are grappling with attracting and retaining top-notch talent. The aura of silicon valley jobs, once irresistible to technical graduates and coding aficionados, has started to fade out. Factors such as expensive living costs, exceedingly high competition, lack of diversity and inclusion, and demanding work-life balance are just some of the aspects deterring workforce participation.

Furthermore, the increasing ethical conundrums posed by technology seem to deter many potential employees. Artificial Intelligence (AI) powered surveillance and the controversy surrounding data privacy scandals are leading many tech professionals to question the morality and impact of their work. This brings talent recruitment and retention to a rockier path, piling onto the fading participation in the tech sector.

Closely linked to this is a growing interest in sectors that tech previously overshadowed like the greener renewable energy sector, mental health tech, and FinTech. This is most certainly not an indication of the death of tech. It merely

Enter Your Information Below To Receive Latest News, And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like


    Getchell Gold Corp, a junior miner exploring gold mining in Nevada, has just initiated trading on the Frankfurt Exchange under the symbol GGA1. Getchell...


    With government issues, i.e. bonds, it is essential to consider the “long term trend” in order to get the most benefit and create wealth...

    Latest News

    France has announced the release of François Santoni, a French official that had been held by Niger security forces since July 7. The French...


    Exploration results from the latest Bigfoot Drilling Program at the Tatiggaq Project in Canada’s Thelon Basin, Yukon-Northwest Territories region have demonstrated that the uranium...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2023