Great point about Microsoft’s growing disconnect between income and FCF due to its capex needs. AI is likely to exacerbate this trend, especially because it’s difficult to predict the useful life of specialized chips (GPUs).
Really the parabolic stock price and insane P/E's put the onus on the bulls to justify this, not the bears to criticize. Famous comments from 1999 about Sun or Cisco abound. The addicts only know how to do one thing: Put their money in, suck your money in, pull their money out.
Great point about Microsoft’s growing disconnect between income and FCF due to its capex needs. AI is likely to exacerbate this trend, especially because it’s difficult to predict the useful life of specialized chips (GPUs).
Thanks for reading Tian! Yeah, can't wait to see where this AI hype goes.
Really the parabolic stock price and insane P/E's put the onus on the bulls to justify this, not the bears to criticize. Famous comments from 1999 about Sun or Cisco abound. The addicts only know how to do one thing: Put their money in, suck your money in, pull their money out.
It's easy to be a permabull when stocks move only up right?...
But I like to use my Downside pieces to possibly help investors think better and more critically about business and investing in general.