Musk Proposes to Buy Twitter for Original Price of $54.20 a Share

Pegasus

Pegasus

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Ponderer said:
You can be totally illiterate, and still know it.
Click to expand...

I could also have a Masters degree, and have spent a lot of my time working with Accounting and Finance teams in large financial institutions for the last 10 years or so.
 
ShaunSA

ShaunSA

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Pegasus said:
I could also have a Masters degree, and have spent a lot of my time working with Accounting and Finance teams in large financial institutions for the last 10 years or so.
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And these large financial institutions exist because they want to serve humanity?

What would be the job of an Accounting and Finance team btw? How to maximise gains? How to minimise losses? How to pay the least amount of tax? That kind of thing?

Or is it something like "How to give Shaun an interest free loan that he never has to pay back?" Cos I'm still waiting for that kind of magic to happen :(
 
Pegasus

Pegasus

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ShaunSA said:
And these large financial institutions exist because they want to serve humanity?

What would be the job of an Accounting and Finance team btw? How to maximise gains? How to minimise losses? How to pay the least amount of tax? That kind of thing?

Or is it something like "How to give Shaun an interest free loan that he never has to pay back?" Cos I'm still waiting for that kind of magic to happen :(
Click to expand...

Do you have High school accounting?

We are talking about Growth companies here and why they would not want to show a net Profit on their Financial statements.
 
Pegasus

Pegasus

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ShaunSA said:
You're arguing semantics. Your job is to turn a "profit" into a "loss" so that you can "profit" even more
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Well, I get that you are just trying to be funny here.

But for anyone interested:

Most business text books will have Amazon as a case study, and it's not what you learn in high school.

www.ben-evans.com

Why Amazon Has No Profits — Benedict Evans

Amazon is a bundle - it’s hundreds of separate businesses, all running on the same common internal platforms. The big, established ones are highly profitable, but Amazon chooses to reinvest those profits into new businesses, so that reported net income for the company overall looks low. This mask
www.ben-evans.com www.ben-evans.com

An extract:
So, though we can’t be sure, it looks like the capex is not going up because Amazon’s existing business has become more expensive to run, but because Amazon is investing the growing pool of operation cash flow into the future. All of this brings us back to the beginning - Amazon’s business is delivering very rapid revenue growth but not accumulating any surplus cash or profits, because every penny of cash is being ploughed back into expanding the business further. But, this is not because any given business runs permanently at a loss - it is because the profits from what is already there are spent on making new businesses. In the past, that was mostly in operations, but in recent years the investment firehose has again been pointed at capex.

How long will this investment go on for? Well, do we believe that the conversion of products and businesses to online commerce is finished? Let’s rebase that revenue chart, and look at it as share of US retail revenue. Excluding gasoline, food and things like timber and plants,all hard to ship, at least for now, Amazon has about 1%.
Click to expand...

You'll find that Takealot and other tech / growth companies copy this.
 
Tim_vb

Tim_vb

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1,385
Temujin said:
Its clear at this point that if elon knew what was good for him, he would come here to this thread to get much needed advice on how to run his businesses, cos obviously the worlds richest man knows nothing :giggle:
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What makes you think he knows anything apart from financial engineering and ferreting out taxpayer subsidies with fake visions of the future? Ya boy massively overpays for a social media company just as the tech bubble implodes - I'll admit it does take the focus off his numerous other failures though. (FSD, Cybertruck, Semi, Roadster 2.0, Solar Tiles, AI chips, AI robots, Robotaxis, Hyperloop, Starlink profitability, Solarcity etc etc)

Elon is a dumb person's idea of a smart person
 
ShaunSA

ShaunSA

Derailment Squad
Joined
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Messages
49,750
Pegasus said:
Well, I get that you are just trying to be funny here.

But for anyone interested:

Most business text books will have Amazon as a case study, and it's not what you learn in high school.

www.ben-evans.com

Why Amazon Has No Profits — Benedict Evans

Amazon is a bundle - it’s hundreds of separate businesses, all running on the same common internal platforms. The big, established ones are highly profitable, but Amazon chooses to reinvest those profits into new businesses, so that reported net income for the company overall looks low. This mask
www.ben-evans.com www.ben-evans.com

An extract:


You'll find that Takealot and other tech / growth companies copy this.
Click to expand...

And you're trying to be smart. Amazon exists for a reason. And it isn't because they want to deliver stupid packages every day
 
ShaunSA

ShaunSA

Derailment Squad
Joined
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Messages
49,750
Tim_vb said:
What makes you think he knows anything apart from financial engineering and ferreting out taxpayer subsidies with fake visions of the future? Ya boy massively overpays for a social media company just as the tech bubble implodes - I'll admit it does take the focus off his numerous other failures though. (FSD, Cybertruck, Semi, Roadster 2.0, Solar Tiles, AI chips, AI robots, Robotaxis, Hyperloop, Starlink profitability, Solarcity etc etc)

Elon is a dumb person's idea of a smart person
Click to expand...

So what is your net value today Tim? :whistling:
 
Pegasus

Pegasus

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Joined
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Messages
13,975
ShaunSA said:
And you're trying to be smart. Amazon exists for a reason. And it isn't because they want to deliver stupid packages every day
Click to expand...

Do you understand any of this?

So, though we can’t be sure, it looks like the capex is not going up because Amazon’s existing business has become more expensive to run, but because Amazon is investing the growing pool of operation cash flow into the future. All of this brings us back to the beginning - Amazon’s business is delivering very rapid revenue growth but not accumulating any surplus cash or profits, because every penny of cash is being ploughed back into expanding the business further. But, this is not because any given business runs permanently at a loss - it is because the profits from what is already there are spent on making new businesses. In the past, that was mostly in operations, but in recent years the investment firehose has again been pointed at capex.

How long will this investment go on for? Well, do we believe that the conversion of products and businesses to online commerce is finished? Let’s rebase that revenue chart, and look at it as share of US retail revenue. Excluding gasoline, food and things like timber and plants,all hard to ship, at least for now, Amazon has about 1%.
Click to expand...
 
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