It's a bit of a slight of hand that involves independently valuing each part of the company. Nonetheless, that 55% YoY loss in GAAP income doesn't look too good

It's a bit of a slight of hand that involves independently valuing each part of the company. Nonetheless, that 55% YoY loss in GAAP income doesn't look too good. There's also the fact that the company has $20bn in current and deferred liabilities and debt, with long-term liabilities up 300% since 2009. A company can be profitable and still have a negative valuation, specifically if its liabilities outgrow its revenue. Generally, such companies become takeover targets if there's anything worth preserving. (Theoretically, the concept is that equity holders will take a discount on their shares because the company's poor prospects reduce liquidity in trade, and holding onto a share is seen as riskier than taking a lesser haircut now.) The previous discussion is at https://news.ycombinator.com/item?id=7606891 https://news.ycombinator.com/item?id=7606891.