Post #3420120
2026-06-24 16:50 UTC
@vidar@m.galaxybound.com Amazon long-term debt tripled in 24 months, Google's went up 7 times IIRC, Oracle has an absolutely bonkers >3.5x debt-to-equity ratio. Microsoft doesn't look as bad on paper, but Microsoft has a stake in OpenAI so there's that. And then there's the SPVs. There's been several SPV that have been stood up to hold debt so I don't think anybody knows exactly how much debt has been accumulated. The combination of zero cash flow and a lot of debt is rather explosive.
Replies (1)
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@vidar@m.galaxybound.com 2026-06-24 17:38
@gabrielesvelto@mas.to Low cash on hand != zero cash flow. None of these have zero cash flow, and you *want* debt to increase if you have good reason to think you can buy more cashflow with the money than it costs to service the debt - that motivated my startup comparison. Debt to equity is meaningless unless you expect the company to fail. Oracle has a *market cap* of $446bn, or ~3x their debt, and costs of maintaining their debt equivalent to ~20%-25% of operating income. They are not at riskl.