Yahoo Finance Live’s Seana Smith discusses how the collapse of Silicon Valley Bank has affected companies like Roku, Roblox, and Etsy.
Video Transcript
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JULIE HYMAN: And as we talk about systemic risk and whether that is, indeed, what is happening, Yahoo Finance's Seana Smith has been checking on the companies that are affected by the collapse. And as we've talked about, they're supposed to get their money back. But nonetheless, it's still raises questions here.
SEANA SMITH: It raises questions. It raises some fears out there, especially on main street. Some of those investors out there, the every day investors are trying to make sense of all this. So we took a look at some of these larger companies that have reported exposure to SVB, to Silicon Valley Bank.
But because of regulators, like Julie just said, did approve those plans over the weekend to backstop depositors, we aren't seeing mass panic. Now, a couple of the bigger names with exposure here. We're gonna talk about Roku, Roblox, Etsy, and also Rocket Labs here, just to break down all of that for you because in it's more than 40-year history at Silicon Valley Bank, they did develop very deep ties within the tech industry.
So let's break down all of that exposure. Roku saying in a filing, that it had about $487 million, just over a quarter of its cash with the bank. Roblox had about 5% of its $3 billion of cash. And also space startup Rocket Lab confirming to Yahoo Finance that it had $38 million in deposits with SVB. And that accounts for about 8% of its total cash.
And I mentioned Rocket Lab here because that's a smaller of this grouping right here. But like you said, these depositors will be made whole. And because of that, we aren't seeing maybe as mass panic as we would have expected. Rocket Lab shares off just about a 1/2 of a percent. Yes, Etsy is in the red. But look at that, Roblox actually moving to the upside this morning, up just about 2 and 1/2%.
Now, Rocket Labs saying that liquidity, it does not expect it to be an issue. They said that in a statement to Yahoo Finance. They do not expect the bank's failure to impact operations. A Vimeo filing also showing that the company had money with SVB, although that account total less than $250,000.
Let's also talk about Etsy. That name has been thrown out there numerous times over the last 48 hours or so. Etsy used SVB to facilitate some of its payments to sellers. Now, the company telling Yahoo Finance that it, quote, "Recently experienced a delay in issuing payments to some sellers. But it does expect to get those sellers their funds within the next several business days."
So in this case, the depositors will be made whole. But there's still some worry out there-- and that of course, is reflected in the massive selloff that we are seeing in some of these regional banks, as a number of these startups, a number of these smaller companies rethink how they are allocating their funds.
You're looking at losses, 67% PacWest, Zions, Western Alliance, some of those names halted here in earlier trading. But certainly there is some panic when it comes to the regional plays, guys.
JULIE HYMAN: Yeah, most definitely. Panic, I think, is a good way to explain what is going on here. Yeah.
BRIAN SOZZI: Absolutely.
