3 ms·
Can't get past the paywall but who the F already didn't know this for over a year? Go read Ed Zitron, Bloomberg, you're drunk.
by dinofp 9mo ago
Can't get past the paywall but who the F already didn't know this for over a year? Go read Ed Zitron, Bloomberg, you're drunk.
- lovich 9mo agoI’ve read Mr. Zitrons articles and recently exited a 10 year old position I held with Nvidia due to his analysis, but this part of the article was news to me > The investment requirements are so large that equity financing alone won’t do. The balance sheets of many of the major players have been altered significantly. Looking at Meta’s annual statement before ChatGPT was released to the public in November 2022, it had over three times as much cash as debt on its balance sheet. Last quarter it had 15% more debt. Microsoft had 30% more cash than debt pre-ChatGPT. Now it has almost 20% more debt. Amazon, which has traditionally had a more leveraged balance sheet, now has over 50% more debt than cash I was still under the impression that all the faangs had more cash than liabilities, I wasn’t aware that had flipped
- VirusNewbie 9mo agoWhy hold cash when you're a money printing machine about to go into an inflationary period?
- therobots927 9mo agoEven if you’re correct about entering an inflationary period that doesn’t mean money is better in chips than cash. Chips can depreciate faster than cash even in an “inflationary environment”. They’d be better off buying back shares.
- zerosizedweasle 9mo agoPaywall removed: https://archive.is/mwmia https://archive.is/mwmia