"NVIDIA is Enron" (Subsidising the Pyramid Scheme That It Profited From), Microsoft is Next to be Down for the Count
"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."
That tweet cited is misleading in a way; see: NVIDIA’s Total Debt Trebled in Three Months! Later this month we'll see by HOW MUCH MORE the debt of NVIDIA grew
Yesterday: SoftBank Loses $7 Billion as AI Data Centers Turn Out to Be Risky Investment
NVIDIA has financial issues, hence the CFO became interim CEO. Last month we wrote, based on leakers' accounts, that NVIDIA was trying to pay workers in "shares" instead of money and it then added restrictions on the sales of such "shares" (to avoid panic sales or fast implosion of the stock, akin to "run on the bank").
Microsoft has long done the same thing. Those are signs of companies in distress.
There are some very big Microsoft layoffs coming. After the first week of December Microsoft will see who didn't take "the offer" and then start preparing a "chopping list" for staff it'll cull in early 2027. It won't be pretty, no prettier than almost a whole day's downtime during weekdays. Microsoft disservices are down. The stock also (-2.62%).
"No word from Satya yet," someone pointed out, linking to this article. Maybe he uses Outlook, we've joked, and there's no word (or Word) from him yet. Even Microsoft cannot get work done today.
Microsoft's debt is up 5.1 billion dollars in just 3 months. Payroll cannot be done without borrowing money? And then you tell almost 30% of the staff that they're not wanted anymore? Troubles loom.
While some shoddy 'news' sites rushed to say nonsense like Microsoft being "most valuable" company all we can see is a company telling 60,000 of its own workers to leave while debt soars and Microsoft increasingly looks like the "next NVIDIA" (in the negative sense of the term). █