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Jack's at least a 2-hit wonder. Maybe 3 if you count Block's new direction.
by pbreit 4y ago
Jack's at least a 2-hit wonder. Maybe 3 if you count Block's new direction.
- Bubble_Pop_22 4y agoReally? What do they do? And I mean practically speaking, not aspirationally I also don't care about the stock price What is the credit rating of Block, Twitter and Square? D- ? DD- ?
- onethought 4y agoYou don’t care about stock price. But credit ratings are the bastion of truth! Square changed the game on merchant accounts with Point of Sale systems.
- Bubble_Pop_22 4y ago> But credit ratings are the bastion of truth! It's the only market where you can make a direct comparison between company X or Y and the most solid entity in the world which is the US Federal Govt. for you cannot buy stocks in Uncle Sam, only bonds. > Square changed the game on merchant accounts with Point of Sale systems. Business isn't politics, you have to show profits or at least huge FCF to claim that you've made it. Xerox was the game changer with GUI , BlackBerry/PocketPC with smartphones, Myspace with social media etc...yet only historians of business remember such details. Changing the game isn't the name of the game. Signing off incredible amounts of quality of life for the American consumer, that's what it's all about.
- onethought 4y agoGM has a higher credit rating than Tesla… despite being a company that went bankrupt and has declining sales across the board, has lower margins lower mar cap and a much shakier forward plan and heaps more debt. So what are you talking about?
- nradov 4y agoUnlike individual credit scores, prior bankruptcies don't really factor into corporate credit ratings. Strategic plans don't matter either. The rating agencies look mainly at financial metrics which are strongly correlated with default risk.
- onethought 4y agoPrior default doesn't factor into default risk? There is something really wrong with rating agencies. I think you've convinced me more of my view rather than sway me. The credit scores are completely meaningless.
- s1artibartfast 4y agoWhy would it? it isnt a question of character. It is just assets and profit vs Debt. The same is true for individuals too. If you have enough collateral, no one gives a shit if you went bankrupt in the past.
- onethought 4y agoIt’s a question of governance. If they couldn’t manage it before… why can they now? GM has a debt ratio of 1.7 compared with Tesla (the high growth new comer) of 0.9. You put ANY metric between Tesla and GM that could justify GM having a higher credit rating. It’s ridiculous.
- nradov 4y agoYou seem to be deeply ignorant of basic finance. Have you ever actually read a bond rating from one of the big rating agencies? They explain the metrics they use. If you think you have found an error in bond rating procedures then put your money where your mouth is. Go long Tesla bonds and short GM bonds, and make a fortune. Be sure to lever up to maximize your returns.
- 4y ago
- colburnmh 4y agoBlock/Square: BB Twitter: Ba2 Telsa: A-AAA depending on the debt type However, Telsa and Twitter are likely to have credit impacts if Musk acquires Twitter because of the structure of the deal. Musk is using $62 BN of Tesla stock to finance the Twitter buyout, which increases Telsa's debt leverage, and will introduce $13 BN of new debt for Twitter. Both companies could see a drop in credit ratings, at least temporarily. But the market is fickle, and Musk is unpredictable, so... Sources: https://www.fitchratings.com/entity/square-inc-97197931 https://www.fitchratings.com/entity/square-inc-97197931 https://www.marketwatch.com/story/twitter-credit-faces-a-multiple-notch-downgrade-as-musks-buyout-leads-to-significant-spike-in-debt-11651000133 https://www.marketwatch.com/story/twitter-credit-faces-a-mul... https://www.fitchratings.com/search?query=tesla https://www.fitchratings.com/search?query=tesla