Economic 'Category 5 storm' brewing in 2023, market expert warns
2022 was worst year for the stock market since 2008
Wedbush Securities managing director Dan Ives warns that many Big Tech companies still need to 'rip the Band-Aid off' in terms of layoffs.
After the most volatile year for the stock market since 2008, Wedbush Securities managing director Dan Ives warned on "Mornings with Maria" Tuesday that Big Tech companies still need to "rip the Band-Aid off" in terms of layoffs as a "Category 5 storm" threatens the macroeconomic picture for 2023.
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HOST MARIA BARTIROMO: You've got a number of companies either freezing, hiring or cutting their workforce. Is that going to continue this year?
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. (Getty Images)
DAN IVES: 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 cuts in Big Tech. 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. I think, be that as a catalyst, I think you will see a continued cutting of heads in Big Tech because they're getting ready for the Category 5 storm in terms of what we're seeing with the macro.