Shervin Pishevar has come out of hiding to hit the world with 21 tweets in a day-long storm of messages. The founder of Sherpa Capital and early investor of Uber has some very negative things to say about the economy. And this comes after an abrupt resignation from his post atop Sherpa Capital.
He was forced to resign from Sherpa Capital due to sexual harassment allegations. He continues to say that these allegations are false. He explains that former enemies are out to get him and that he had to resign from Sherpa Capital in order to shield his favorite company from the fight.
The world has not heard from Shervin Pishevar ever since. Now he’s being hard to ignore as he spews dire warnings about the future of the economy.
His tweets see an economy that is about to permanently stagnate because underemployment and even unemployment will become ingrained in the system. He calls this underemployment “systemic” and it will have negative consequences on the stock market.
This tweet storm also predicts the crash of the stock market in the very near future. He believes the stock market will plummet an astounding 6,000 points to crash the entire economy. He points to the unpredictability coming out of the White House these days. Trump’s trade wars are only making investors skittish and it will end badly, according to Shervin Pishevar.
The former head of Sherpa Capital continued on his rant. He believes the upcoming trade wars will make it impossible for the bond market to carry the economy. It will slowly fail to rally along with the equities market so long as trade fluctuates. Essentially, it will not stabilize until the White House stabilizes.
He even aimed his tweets at Silicon Valley. He believes the community of tech companies is bound to fail because they have become complacent and have put limits on entrepreneurship. He believes the spirit that founded the valley has leaked out all over the world and is no longer set within geographical limits. That pioneering spirit is a movement and not a place, according to Shervin Pishevar.
When dealing with the stock market, it is relatively easy to be lulled into a false sense of security. If invested in a particular company, you might be inclined to only look at the bottom line results. You would not be alone in doing this, for many people, this is common practice. However Sahm Adrangi of Kerrisdale Capital is not many people, and he has recently taken QuinStreet.com, a data mining middleman for advertising sites, to town.
Sahm Adrangi is trying to point out to potential and current investors that this company’s current success is illegitimate. Sahm Adrangi points out how QuinStreet’s main customer has been a fake website for the past couple months. This website essentially scams people into clicking ads that promise to pay them, a desperate attempt to increase traffic.
Sahm Adrangi does not stop there either. He notes how that the problem with QuinStreet, and has been for years, is that their technology and entire business model is clunky. This has caused them to become ever more irrelevant throughout the years in Sahm Adrangi’s opinion. He backs this claim by citing the fact that much of QuinStreet’s eight-year stock history has been plagued by low exchange rates.
In an economy where things are constantly changing, it seems that QuinStreet is having trouble keeping up. This is not surprising either, taking into account the nature of technology. If a company like QuinStreet is going to survive, staying up to date with your competition is essential for success and continued growth. Sahm Adrangi seems to be giving out a warning call with this article. He is letting investors know that a spike in revenue does not necessarily mean a company is moving back towards good standing. In this case, the company in question is using deceptive practices in order to stay financially relevant. What investors should stay focused on is the fact that the business model is still dated, making further investments unwise.