Zusha Elinson reports in the Wall Street Journal:
In the first quarter of 2016, table sales to companies fell 50% from the prior quarter. In that period, U.S. startup funding dropped 25%."If you don’t have a ping-pong table, you’re not a tech company. It’s equivalent to ‘we don’t wear suits.’ ”
Twitter’s gloomy quarterly report last week unsettled investors. They might have anticipated trouble more than a year ago had they noticed one key indicator.
Until late 2014, Twitter was regularly ordering ping-pong tables from Billiard Wholesale, a store in San Jose, Calif. Then, suddenly, it wasn’t.
The store’s owner, Simon Ng, figured it either ran out of space “or they’re having company problems.”
Twitter Inc.’s slowing user growth has been unsettling analysts, and the company’s revenue growth was unexpectedly weak in last week’s report. Asked why Twitter stopped buying tables, spokesman Jim Prosser says: “I guess we bought really sturdy ones.” Twitter spokeswoman Natalie Miyake says: “Honestly, we’re more of a Pop-A-Shot company now,” referring to an indoor basketball game.
Is the tech bubble popping? Ping pong offers an answer, and the tables are turning.
“Last year, the first quarter was hot” for tables, says Mr. Ng, who thinks sales track the tech economy. Now “there’s a general slowdown.”
In the first quarter of 2016, his table sales to companies fell 50% from the prior quarter. In that period, U.S. startup funding dropped 25%, says Dow Jones VentureSource, which tracks venture financing.
The table-tennis indicator is a peek into Silicon Valley culture, in which the right to play ping pong on the job is sacrosanct.
“If you don’t have a ping-pong table, you’re not a tech company,” says Sunil Rajasekar, chief technology officer at Lithium Technologies, a San Francisco software startup.
FutureAdvisor’s ping-pong table, bought in December, stands near the free-lunch area under exposed concrete ceilings, next to the beer taps near where the San Francisco wealth-management startup’s employees park bicycles.
Joe Fahr, its 30-year-old head of marketing, keeps his $100 Butterfly-brand paddle in a special bag at his desk and brings in his dog Gigi, a Brussels Griffon. He is No. 2 in the internal ping-pong rankings at the startup, recently bought by BlackRock Inc., and says the table is an equalizer that “breaks down the hierarchy.”
“It does make a psychological statement to the founders and employees that we’re not your father’s company,” says Steve Blank, who installed a ping-pong table at the game company he founded and now teaches entrepreneurship at Stanford University and University of California, Berkeley.
“It’s equivalent to ‘we don’t wear suits.’ ”
Pivotal, a San Francisco software company, has eight tables. It has netted off the area to block errant balls.
The tables aim to give coders a break, says spokesman Michael Lee. “This is an activity thoughtfully selected by our CEO for their benefit for the sake of their corneas.”
Established tech companies deploy tables, too, and ping-pong leagues abound in the Bay Area. The annual SaaS Ping Pong tournament in June, staged at Pivotal, pits teams from “software as a service” providers such as Oracle Corp. and Dropbox Inc.
Venture capitalist Michael Cardamone, the tournament’s co-organizer, approves of young companies buying tables with venture funds.
“You absolutely should,” he says. “It’s part of building culture.”
Table buying “tracks most closely with startups that hit that threshold where they’re taking out office space,” says Russell Hancock, chief executive of think tank Joint Venture Silicon Valley, which follows economic trends. “That’s when you’re going to get your first ping-pong table.”
Table sellers seeing a decline include David Vannatta, sales team leader at Sports Authority in San Francisco. The store was getting a “good flow of tech companies” buying tables, he says, but sales have fallen since Christmas.
Mr. Ng, 38, who drives a Porsche Boxster to work, sells ping-pong, foosball and pool tables from a store wedged between a CrossFit gym and a cabinet shop. His company sales are primarily to tech firms.
In February, when the Nasdaq index fell to its lowest in over a year, he says he sold the fewest ping-pong tables to companies since he started keeping track in 2014. That tech-heavy index includes many more-established companies.
Yahoo? “They haven’t bought stuff in a looong time,” he says, pulling up a picture of a purple foosball table, the last piece he sold to the company. ( Yahoo Inc. has been hard hit by shrinking revenue.)
Intel? It stopped buying over a year ago, he says. ( Intel Corp. announced 12,000 job cuts last month.)
Google? “Just bought a bunch of stuff.” (Google parent Alphabet Inc. missed Wall Street estimates but posted healthy increases in first-quarter revenue and profits.)
Yahoo spokeswoman Carolyn Clark says while headquarters hasn’t bought a table recently, its offices elsewhere have. “I can assure you that people are still playing ping pong at Yahoo.”
Google spokeswoman Roya Soleimani says ping-pong tables “are part of our real estate and work place services budgets as well.” Intel didn’t respond to inquiries.
Mr. Ng says he definitely wouldn’t invest based on ping-pong sales. “I think it tracks but not predicts it.”
Mark Cannice, a University of San Francisco professor, issues a quarterly index of venture-capitalist confidence. “I put more faith in venture capitalist insights and confidence,” he says, “than I would in ping-pong-table sales.”
“You could probably track Odwalla juices,” says venture capitalist Joseph Floyd, referring to the drink ubiquitous in tech workplaces.
“I thought it was the foosball index,” says Mr. Blank, the startup founder. That table-soccer game, a fixture in the dot-com boom, is still common.
During that boom, which ended in 2000, pool was the popular table. Some say the switch to table tennis shows entrepreneurs now are more practical. The tables are cheaper and double as meeting surfaces.
Ping pong, however, has a downside in a downturn. The tables offer a lousy return for companies selling assets to raise funds or return money to investors and creditors.
Startups pay up to $2,300 for a high-end Butterfly-brand table. Mr. Ng says he won’t buy them back, because nicks make them nearly worthless.
Martin Pichinson, co-president of Sherwood Partners, which auctions failed Silicon Valley firms’ assets, says he can sell pool tables but used ping-pong tables often fetch only $5 or $10.
Sherwood gives them to churches and synagogues. “If the banks want ’em, they can have ’em,” he says.
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The Tech Bubble Popping? Ping Pong Table Sales May Be A Leading Indicator The tech bubble is popping. Or is it? Recently, a ping pong table went for $4,000 on eBay. The table was a collaboration between Chris Hardwick and the Nerdist website. It was an exclusive limited edition of 100 ping pong tables that were sold at the price of $4,000 each. The seller had no idea how much the table would be worth in the future and thought it would be worth at least 10 times its original value. It doesn't seem like such a crazy idea if you consider that Ping-Pong tables are used often in offices and homes to entertain guests or just to have fun with family members. In addition to this, recent sales figures show that sales of ping pong tables have been increasing as well as sales of paddle sets and paddles. Most students are drawn to these types of articles and information, but they are unable to prepare for their exams, If you have been struggling with your exams and want assistance, students can hire someone to take my online class for me and get higher grades on their examinations by providing them with the best available resources, including quality academic services.
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The recent report from Twitter revealing a significant 50% drop in table sales has sent shockwaves through the startup community. This unexpected decline in sales has had a direct and immediate impact on the funding prospects of many budding entrepreneurs. As startups heavily rely on investment and capital to fuel their growth, this sudden downturn in an essential revenue stream has raised concerns and sparked discussions about the future of these innovative ventures. In this section, we will delve into the implications of Twitter's report on table sales and explore how it is affecting the funding landscape for startups across various industries.
Ping pong table sales, leading indicators, economic trends, recreational activities, work-life balance
In today's fast-paced world, the concept of work-life balance has become increasingly important. As individuals strive to find a harmonious equilibrium between their professional and personal lives, recreational activities have taken on a new significance. One such activity that has gained popularity is ping pong.
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It's interesting to see how startup culture has evolved and how the tech bubble may be affecting these companies. One aspect that stood out is the comparison between perks like ping pong tables and actual employee well-being. It's a bit reminiscent of how industries sometimes focus on appearances over substance. For instance, LSAT exam takers face a similar dynamic in test prep, where flashy apps or services promise success, but it ultimately comes down to the individual's effort and strategic studying.
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