Bonum Certa Men Certa

Microsoft's Debt Grew 2.1 Billion Dollars in the Past 3 Months Alone or 8.2 Billion in the Past Half a Year

posted by Roy Schestowitz on May 03, 2025

That's very different from what the mainstream press tells the public, including shareholders:

The tables summarizes Microsoft’s Total Debt and common size over the last few quarters

A few hours ago it was revealed, at long last (late on a Saturday), that since the beginning of the year Microsoft's debt grew by almost a billion dollars per month, continuing the trend that we saw last year (Apple's debt grew by about half a billion per month in the same time period; they both have problems). Microsoft is basically borrowing more and more money whilst it lays off tens of thousands of workers (not counting contractors, temps etc.) to reduce costs and it still needs to borrow more money while faking assets in the balance sheet, just like at IBM. To borrow more money when the interest rates are this high is a last resort or a panicky recourse.

It's only good for those who net huge bonuses based on quarterly "targets".

This is not going to end well. Microsoft trying to fool tech-illiterate investors by name-dropping buzzwords and storytelling (tall, extravagant claims that nobody can verify/audit [1, 2]) is only a temporary strategy of delay, delay, delay. Stalling tactics make the bubble even bigger before it implodes and the biggest financial press now actively participates in spreading lies for Microsoft. Pivot to AI caught one of the leading papers spreading fake news (just like IBM). It said: "The numbers Microsoft will admit to on AI are that profits are down from AI infrastructure spending."

No, Microsoft did not state ‘strong AI demand’ in Q1 2025 — the FT is wrong

That's in spite of canceling all sorts of major projects and facilities [1, 2], contrary to lies told back in January by the President who last week lied to Europe about commitments (non-existent money and bribes).

"Microsoft, the world’s most valuable company, declared a profit of $4.5 billion in 1998; when the cost of options awarded that year, plus the change in the value of outstanding options, is deducted, the firm made a loss of $18 billion, according to Smithers."

-The Economist, 1999

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