5 ms·

Don't they have an enormous cash pile? How does that translate to poor performance?

by mancerayder 4y ago

capableweb 4y ago
I'm no financial expert, but wouldn't hoarding an "enormous cash pile" be a indicator of not using capital efficiently?
- solarmist 4y ago
  It depends, but investing wisely is very difficult and slow once you get into the billions of dollars.
- reaperducer 4y ago
  I'm no financial expert, but wouldn't hoarding an "enormous cash pile" be a indicator of not using capital efficiently? Having an enormous cash pile is what allowed Apple to keep paying its employees when COVID shut everything down. Every good company has a cash reserve. The one I work for has a policy of maintaining enough cash reserves to operate for 18 months with zero income. It saved our bacon when the virus came around.
  - Delphiza 4y ago
    COVID did not shut down Apple's revenue generation. Revenue growth was staggering during COVID. Remember everybody buying electronics because of lockdowns? They may have felt less inclined to pay people while they weren't standing around in genius bars, but they didn't need cash reserves to keep them going.
- deleted 4y ago
  [deleted]
zug_zug 4y ago
Well they have some money in the bank, but culturally nobody thinks meta is the future (within USA at least). There is massive mistrust of their brand and any product they could ever make (be it lack of privacy or giving a terrible experience by over-monitizing).
- akudha 4y ago
  There is massive mistrust of banks, comcast and a whole lot of other companies and even industries, among the general public. And yet, the same public continues to use their services, even when there are alternatives (at least in some cases, there aren't alternatives to many). Convenience and familiarity trumps other issues, even massive issues like privacy etc. You might be over estimating public's interest in giving their money only to honest, decent businesses - public gives their money to whoever entertains them cheaply and caters to their laziness. Nothing is going to change, unless we all vote with our wallets. But we have already voted, we knowingly support monster companies like Amazon.
  - deleted 4y ago
    [deleted]
  - yurishimo 4y ago
    You're right, but I don't see Facebook (or other Meta properties) approaching that level. Arguably, Whatsapp is the most successful in that area, but largely because they haven't done anything to further ruin their reputation. If/when Meta decides that Whatsapp is going to be their new focus and potential cash cow, they'll try and shove more monetization into that platform and the cycle of user migration will repeat.
andsoitis 4y ago
> Don't they have an enormous cash pile? How does that translate to poor performance? When you run a business, you look towards the future and what profit you're forecasting. You don't want to see decline in profits, you don't want to use your cash reserves to compensate for less profit. Facebook reported $23.1 billion net profit in 2022, a decline on the $39.3 billion made in 2021.

Don't they have an enormous cash pile? How does that translate to poor performance?

capableweb 4y ago

I'm no financial expert, but wouldn't hoarding an "enormous cash pile" be a indicator of not using capital efficiently?

solarmist 4y ago
It depends, but investing wisely is very difficult and slow once you get into the billions of dollars.
reaperducer 4y ago
I'm no financial expert, but wouldn't hoarding an "enormous cash pile" be a indicator of not using capital efficiently? Having an enormous cash pile is what allowed Apple to keep paying its employees when COVID shut everything down. Every good company has a cash reserve. The one I work for has a policy of maintaining enough cash reserves to operate for 18 months with zero income. It saved our bacon when the virus came around.
- Delphiza 4y ago
  COVID did not shut down Apple's revenue generation. Revenue growth was staggering during COVID. Remember everybody buying electronics because of lockdowns? They may have felt less inclined to pay people while they weren't standing around in genius bars, but they didn't need cash reserves to keep them going.
deleted 4y ago
[deleted]

zug_zug 4y ago

Well they have some money in the bank, but culturally nobody thinks meta is the future (within USA at least). There is massive mistrust of their brand and any product they could ever make (be it lack of privacy or giving a terrible experience by over-monitizing).

akudha 4y ago
There is massive mistrust of banks, comcast and a whole lot of other companies and even industries, among the general public. And yet, the same public continues to use their services, even when there are alternatives (at least in some cases, there aren't alternatives to many). Convenience and familiarity trumps other issues, even massive issues like privacy etc. You might be over estimating public's interest in giving their money only to honest, decent businesses - public gives their money to whoever entertains them cheaply and caters to their laziness. Nothing is going to change, unless we all vote with our wallets. But we have already voted, we knowingly support monster companies like Amazon.
- deleted 4y ago
  [deleted]
- yurishimo 4y ago
  You're right, but I don't see Facebook (or other Meta properties) approaching that level. Arguably, Whatsapp is the most successful in that area, but largely because they haven't done anything to further ruin their reputation. If/when Meta decides that Whatsapp is going to be their new focus and potential cash cow, they'll try and shove more monetization into that platform and the cycle of user migration will repeat.

andsoitis 4y ago

> Don't they have an enormous cash pile? How does that translate to poor performance? When you run a business, you look towards the future and what profit you're forecasting. You don't want to see decline in profits, you don't want to use your cash reserves to compensate for less profit. Facebook reported $23.1 billion net profit in 2022, a decline on the $39.3 billion made in 2021.