Barry Diller calls for an end to 'absurd' earnings guidance, says his firms won't do it anymore

's Jamie Dimon teamed up in 2018 to call for the end of the practice of issuing earnings projections. Dimon told CNBC at the time that the Business Roundtable group of CEOs threw support behind companies backing away from giving outlook. Berkshire Hathaway does not provide guidance. Buffett told CNBC then the practice can tempt executives to manipulate numbers to meet or beat expectations.

Diller agreed, saying that providing quarterly guidance and full-year outlooks "made some sense" when the practice began. But now it has lost its value, he said. "Companies spend too much time massaging the process, getting the model right, so that they can always beat, not miss expectations, and the markets are always reactionary on that wildly short-term, dumbness of what happened in the next quarter," Diller said, adding the models are "based on a phony premise."Expedia, Hotels.com, and Trivago, while IAC's brands include Ask.com, video-sharing service Vimeo and news site The Daily Beast.

That's bullshit.

Great stuff

Couldn't agree more!

interesting

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Barry Diller says Expedia and IAC won't be giving earnings guidance anymore'Guidance is a bad business. We're out. We're not doing it anymore,' the billionaire businessman told 'Squawk Box' on Friday. I like this guy’s straight forward no nonsense approach. Very refreshing In other words 0 transparency because the company is doing so bad he won't issue terrible guidance and lose money. Imagine running your personal finances and not having any idea if you will be bankrupt or sitting on a pile of cash at the end of the day lol. Who needs earnings anymore? Just buy!
La source: CNBC - 🏆 12. / 72 Lire la suite »

Barry Diller says Expedia and IAC won't be giving earnings guidance anymore'Guidance is a bad business. We're out. We're not doing it anymore,' the billionaire businessman told 'Squawk Box' on Friday. I like this guy’s straight forward no nonsense approach. Very refreshing In other words 0 transparency because the company is doing so bad he won't issue terrible guidance and lose money. Imagine running your personal finances and not having any idea if you will be bankrupt or sitting on a pile of cash at the end of the day lol. Who needs earnings anymore? Just buy!
La source: CNBC - 🏆 12. / 72 Lire la suite »