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@vidar@m.galaxybound.com

Post #3420122

2026-06-24 17:38 UTC

@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.

Replies (1)

  • @gabrielesvelto@mas.to 2026-06-24 19:05

    @vidar@m.galaxybound.com I don't expect Oracle to fail but my opinion isn't worth much and CDS tell a different story https://www.bloomberg.com/news/articles/2026-05-23/hyperscaler-debt-flood-brings-derivatives-bonanza-credit-weekly

    Open ##3420124