Why software stocks got hammered today

We’re nearly at the stopping point ahead of a long weekend here in the United States, but that doesn’t mean that the tech market has given up on making news. And the news is not good.

In the wake of Snap’s layoffs and startup staff-cutting galore, you are likely not surprised that there is some bad news out and about in the tech market. But today’s ill tidings are a bit worse than just another round of lackluster headlines — after managing to stabilize, the value of software stocks took more blows today.

For startups, falling stock prices among their public comparables can mean lower exit prices and less generous valuations when they fundraise. And after enduring quarter after quarter of their public-market brethren shedding value, some of the biggest names in tech are at it again.