Why Wall Street is Ignoring Big Tech's Debt
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Start your own store with #printify: https://try.printify.com/72vgyfrvedkq The first 100 people who use the code PATRICK will get 15% off their first order! Nikkei Asia recently reported that the five biggest US tech companies are carrying an estimated $1.65 trillion in "hidden," off-balance-sheet debt — and a lot of commentators have reached for the word "Enron" to describe the issue. In this video I look at whether that comparison holds up. It doesn't: unlike Enron, this debt isn't concealed through fraud — it's disclosed in the footnotes, it breaks no accounting rules, and much of what is going on is perfectly ordinary. But that raises a more interesting question than "will they get caught." If the aggressive stuff — the adjusted earnings, the leases, the stock-based compensation added back — is all sitting there in plain sight, does dressing up the numbers actually fool anyone? Drawing on the work of Aswath Damodaran, Richard Sloan, Robert Bloomfield and others, I dig into what th
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