People tend ro forget that successful companies issue debt. Coca-Cola is one of the most consistently profitable companies out there, and they have around 50 billion in debt. Their earnings don’t even come close to what the tech companies are doing, and the debt being issued is really pretty meaningless. When it’s a good environment to issue debt, a smart company will.
LuBrooo on
That’s good right?
Viper-90 on
What does this mean?
Ornery_Proposal_3784 on
I guess these guy can cover that debt anytime it is required and these guy have proven over years that they do invest the money into things that are worth it. They dont spend it on a mission to mars or to buy land and speculate on prices.
Unless its Altman who promises “paradise” and has not proven a thing yet.
23 Comments
Calls on Google.
Hmmmm… CALLS IT IS!
When you want to raise cash, debt is a lot cheaper than equity.
Anyone touching Oracle debt will be burnt
If we use the same math, people use to predict their future value that means … uh, oh…
Interest rates will be going down
Buy backs it is
Google has 50b FCF a year after 90b Capex, 70b buy backs 15b dividends, 30b acquisition and 175b in opex cash flow. They are fine lol.
So that while having 100b on cash.
They know they have to invest or they will get left behind very fast. There is a reason all the mag 7 are doing this. This is an ai arms race
Only worried about META and ORCL.
Others have solid FCF and balance sheets.
Definitely definitely not a bubble
bubble keeps growing
the underlying gram thot twitch egirl bonds are subprime shit lmao
Is this to fuel Capex spending on data centers?
I really hate this graph having different steps on the x-axis. Cosmetic, but it grinds my gears.
preparing to be bailed out by the public if ai goes bust.
I see they’re playing from the WSB playbook. “It’s not real money if I can’t see it in front of me.”
Bullish
https://preview.redd.it/j19nry4tt63g1.jpeg?width=1199&format=pjpg&auto=webp&s=5a482b6545a294c4836d285d904a0f068ec6f5d4
People tend ro forget that successful companies issue debt. Coca-Cola is one of the most consistently profitable companies out there, and they have around 50 billion in debt. Their earnings don’t even come close to what the tech companies are doing, and the debt being issued is really pretty meaningless. When it’s a good environment to issue debt, a smart company will.
That’s good right?
What does this mean?
I guess these guy can cover that debt anytime it is required and these guy have proven over years that they do invest the money into things that are worth it. They dont spend it on a mission to mars or to buy land and speculate on prices.
Unless its Altman who promises “paradise” and has not proven a thing yet.