Michael Burry’s bear case is based on the premise that the AI hyperscalers are under-depreciating their capital spending in order to keep reported GAAP profits artificially high. There is also the suggestion that much of this CapEx will be malinvestment…
On Monday morning Michael Burry tweeted out more details about his AI Bubble thesis. His claim is that the AI hyperscalers are “understating depreciation” by extending the period over which they are depreciating the Nvidia chips and all the other…
Really good “Ahead of the Tape” WSJ column by Mark Gongloff from Friday: “Investors, It Pays to Mind the GAAP Gaps”. He discusses the widening gap between operating earnings and GAAP earnings over the last 15 years. From the chart,…
As I wrote a few weeks ago, in my review of Yahoo!’s 3rd quarter, changes in stock options accounting made Yahoo!’s quarter seem worse than it was. In an aside in that post, I also mentioned my criticisms of the…
The market responded negatively to Yahoo!’s mediocre 3rd quarter – even though everybody knew it was coming! Yahoo’s shares lost $1.16 yesterday to close at $22.99 on volume of almost 112 million shares. The shares have bounced a bit today and…