alt Hacker NewsDo they? Is a company with $200 billion annual revenue and earnings (EBITDA) of $100 billion having $420 billion of off-balance-sheet debt really staggering?
In many other industries that would be a perfectly normal amount of debt to have. It's only unusual because we are used to tech companies having so much cash on hand they don't know where to put it
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People used to complain that these big companies were sitting on money and not investing.
To be fair to the author, they have no background in finance and work at a site that knows that anti-AI stories get a ton of traffic. The entire site is now just doom-and-gloom clickbait headline after clickbait headline.
brother read those numbers out loud
If I make $200k I do not have $400k off-balance gambling debt
It is not just that they have the debt, it. is they are trying to hide the debt. Why would a legitimate company try to hide their debt?
> they don't know where to put it
ohh, their accountants just dont know where debt goes on the balance sheet. thanks for clearing it up
These companies have valuations reflecting a debt light business. At a minimum, 420 billion in debt is enough to change the stock price by 10-20%. If the company plans to add another 400 billion in debt you need to give it the side eye.
If 50 billion in revenue is from other companies debt spending… then You have a problem.