Everything but the last problem is something money solves. A good production company would ensure that, while issues like that would happen, you’d never be aware of them.
So the theoretical reason for the high values of tech companies is that margin is one of the biggest drivers of value in a dcf, due mostly to the non linear nature of division. However, many of the tech companies we’re seeing don’t have near those margins, they are in fact negative.
What’s wrong with its copy paste? It’s missing a few things but what’s there is great. The type situation is terrible I agree. I can’t even count the number of times I’ve screwed up a currency conversion or not known what currency a cell was. Why can’t it know that dollars are dollars and when I multiple my euros per dollar I get euros?
Flashy 10-Ks are hugely annoying, especially in IFRS where there’s no standard. Give me tables all day every day. The lack of standardization in financial reporting already sinks enough of my time.
Yeah I just don’t understand why we can’t put the full industrial capacity of the U.S. government behind this. I’m genuinely curious about the on-the-ground details which make manufacturing this stuff hard. Would love to see the playbook for raw materials to vial of vaccine.
My guess is the following will take place: companies will generally be more open to WFH. Those who spend more time in the office will develop stronger networks and relationships, will be able to advocate for themselves more easily, and thus will be more successful. People will snowball back into the office as they see this happening. Keep in mind I’m generalizing, I’m fully aware that you can create a culture that doesn’t disadvantage those that are remote, I’m just not convinced that broadly will happen.
In theory, it’s because the marginal cost of software is close to zero, and margin is the biggest driver of value. In practice most of these companies’ margins are negative.
I think there could be a middle ground with an excel like tool with some kind of typing. For example I often get confused about what currencies particular cells are, and mixing this up causes a lot of pain. Not sure why the hard coded number can’t just have a “$” and every time it gets multiplied by EUR/USD changes to a euro, and is displayed as such. This little thing would save me so much time.
Thank you. I certainly did not intend to communicate that “anything goes.” What I meant is that even when you apply the most cold-hearted financial analysis, short sightedness is often suboptimal. It’s tougher when your public investors watch every quarter like hawks.
Hi. I’m an mba. Profits are pretty important and firms should undertake NPV positive activities. We’ve seen amazing products fail many times due to lack of market fit. However, there’s certainly no shareholder value in bankruptcy or lawsuits.
Predatory pricing is a component of anti trust but a very difficult one to prove legally. One must prove that by giving consumers a cheaper product they are being harmed. It's an interesting conundrum.