News Formal

THE FINANCE GHOST: Tech execs need to apply the brakes

  • 📰 FinancialMail
  • ⏱ Reading Time:
  • 18 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 11%
  • Publisher: 63%

Россия Новости Новости

A spending binge by tech bosses shows no sign of stopping - even as profits and cashflows retreat, writes FinanceGhost.

Snap Inc has lost nearly 80% of its value this year. After trading higher than $83 in September 2021, the share price is now below $10, a whopping 88% drop from peak to current levels. This isn’t a fraud or a scandal; it’s just a business that is symbolic of the poor commercial decisionmaking in far too many tech companies.

The cause of this discontent is the use of the price/sales multiple, a measure that reads the first line of the income statement and then ignores the rest. Used by venture capitalists and investors in listed tech firms, it encourages all the wrong kinds of behaviour. “Growth at all costs” isn’t a strategy that the accountants would approve of.

 

Спасибо за ваш комментарий. Ваш комментарий будет опубликован после проверки
Мы обобщили эту новость, чтобы вы могли ее быстро прочитать.Если новость вам интересна, вы можете прочитать полный текст здесь Прочитайте больше:

 /  🏆 20. in RU

Россия Последние новости, Россия Последние новости

Similar News:Вы также можете прочитать подобные новости, которые мы собрали из других источников новостей

THE FINANCE GHOST: Tech execs need to apply the brakesA spending binge by tech bosses shows no sign of stopping - even as profits and cashflows retreat, writes FinanceGhost.
Источник: FinancialMail - 🏆 20. / 63 Прочитайте больше »

PHANTOM SHARES: The Finance Ghost: On the paper trail of Mondi and SappiBoth paper and packaging companies have grown earnings sharply year on year, with Sappi making the best of tight global markets with its strong pricing and Mondi hoping to dispose of its Russian business. I started trading few months ago and have earned minimum R100,000 in the past few months, Chrissdiazn has been managing my portfolio for me he's good at he's job, just ask him how to get started with trading. Mondi may have missed the boat with disposing of the Russian assets.
Источник: dailymaverick - 🏆 3. / 84 Прочитайте больше »

Finance minister on massive government reforms for South AfricaFinance minister Enoch Godongwana has outlined some of the progress that has been made by Operation Vulindlela – a flagship initiative to accelerate the implementation of key growth-enhancing reforms for South Africa.
Источник: BusinessTechSA - 🏆 24. / 61 Прочитайте больше »