4 ms·
Microsoft's "looming problem" seems to be the $130B+ in cash they're sitting on, and finding something to spend it on?
by alex_c 5y ago
Microsoft's "looming problem" seems to be the $130B+ in cash they're sitting on, and finding something to spend it on?
- sumedh 5y agoThey can give the cash back to shareholders.
- WitCanStain 5y agoOr their workers.
- sumedh 5y agoI dont think MS employees are complaining about salaries, if they dont like it they can easily switch to FANG companies.
- missedthecue 5y agothe same people thanks to RSUs
- RC_ITR 5y agoYeah, at least in traditional financial theory, if they can invest it in a way that has NPV of <$1, then they should invest that dollar, and if not, they should just return it. There's obvious optics to draining the cash balance, but it's not a problem per se, because worst case, they just return it to shareholders and Net Income/EV should be unaffected.