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you shouldn't ignore impairment. it's a place to stuff a bunch of bad decisions, and an amorphous bucket where value can be plausibly inflated and deflated to c
by clairity 6y ago
you shouldn't ignore impairment. it's a place to stuff a bunch of bad decisions, and an amorphous bucket where value can be plausibly inflated and deflated to control the performance story of a company (i.e., where fraud can happen).
- deleted 6y ago[deleted]
- valuearb 6y agoThis is all true, but it can also be a place to acknowledge the bad decisions Kalinack made. When you have a grab bag collection of growth businesses like Uber, the important question is whether the core business can be profitable, and to that end you need to exclude the failures of the non core businesses.
- lumost 6y agoisn't uber still priced as if they had grown to be a profitable business across all of their growth businesses? I have a hard time understanding the valuation of Uber given any negative indications on any of their businesses.
- sceptical 6y agoIn this particular case it is mainly the value of the investments in DiDi, Yandex.Taxi and Grab. Once those will bounce back, Uber will have a very profitable quarter. Of course then it will be ignored as just increased value of investments.