SVB Financial May Endure More Headwinds but Also a Potential Inflection Point in 2023
The start-up and technology bank SVB Financial (NASDAQ: SIVB), which is the parent company of Silicon Valley Bank, struggled in 2022 as tech valuations fell off a cliff, venture capital (VC) activity slowed, and client cash burn accelerated.
These headwinds will likely continue in the first half of 2023 as VC firms and start-ups wrestle over valuations and as VC activity remains depressed.
But in the second half of the year, SVB's management team thinks there could be an inflection point, as client's businesses normalize and the bank once again sees widening margins. Let's take a look at what would need to happen for this scenario to play out.
Source Fool.com
