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slightlyoff@toot.cafe ("Alex Russell") wrote:
Like, pick any one of the big tech layoff firms (except Meta; the metaverse thing they were burning cash on was obviously doomed) and then check their cash-on-hand and stock buybacks for for previous decade to get a sense of what was "necessary". By no means unique, but here's t3h g00g:
https://www.macrotrends.net/stocks/charts/GOOG/alphabet/cash-on-hand
Attachments:
- Google spends more than $10BN/quarter on stock buybacks. (remote)
- Google's cash-on-hand is above $100BN (remote)
- [The only thing that had moved in the "wrong direction" was share price to free cash flow ratios. In other words, interest rate shocks discounted the expected future profitability, but there was no actual decline in profits.
https://www.macrotrends.net/stocks/charts/GOOG/alphabet/price-fcf][9] ([remote][10])
- [Net income was only reverting to the mean, not actually hitting dangerous territory, particularly as a percentage. If there was a crisis, it would have taken a lot longer than execs gave it to call.
https://www.macrotrends.net/stocks/charts/GOOG/alphabet/net-profit-margin][11] ([remote][12])