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Newspapers are perishing, downsizing, cost-cutting, going bust across America and in many other parts of the world, facing what business managers like to call the cyclical challenge of recession and the secular challenge of the Web.
"But they have become more urgent because of... recessionary pressures". "The critical issue is you've got a structural industry change [content moving online] coinciding with a cyclical challenge [the advertising downturn]," says Sir Martin Sorrell, chief executive of advertising giant WPP.
The market is back with a vengeance and talent is certainly at a ten-year premium, but this is more than just a cyclical challenge, as outlined above: it's a generational issue.
"While the inventory correction can partially be blamed on the weaker demand, we believe the contraction in semiconductor leadtimes (a cyclical challenge for all semiconductor companies currently) will likely continue to put pressure on the company's overall results for several more quarters," it said.
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Mr. Wu said such slowdowns were the result of cyclical challenges rather than systemic ones.
Of course, cyclical challenges like bad weather, higher gasoline prices and the end of the federal payroll tax cut have also hurt restaurant sales.
It cut its price target to 350p from 450p but kept an overweight recommendation, adding: "While the business faces ongoing structural and growing cyclical challenges, we still expect growth".
But Paul Kedrosky, an investor and the author of Infectious Greed, a venture capital-centric blog, said that there were deeper, more systemic problems for venture capitalists in addition to the cyclical challenges.
But he held out hope, saying the company is well-positioned for growth once its gets past the cyclical challenges.
However, although the portents appear good as an industry that is used to cyclical challenges nothing is being taken for granted.
"We believe slower telecommunications capital expenditures investment in Asia remains an important risk and cyclical challenges in the semiconductor industry are also likely to continue to pressure the company's results," Morgan Stanley said.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com