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re: X/Twitter is already cash flow positive per a Bloomberg reporter
Posted on 10/9/23 at 2:42 pm to TigerHornII
Posted on 10/9/23 at 2:42 pm to TigerHornII
Exactly. The people on this board spend their time worrying about what money market account pays the most interest.
They don't even know what EBITDA is.
They don't even know what EBITDA is.
0
Posted on 10/9/23 at 3:31 pm to Weagle25
I do business valuation as part of my job in M&A daily. EBITDA might not be important to Wallstreetbets smooth brains and technical chart analysis nerds, but for real companies, you'd better believe it is important.
Posted on 10/9/23 at 3:35 pm to TigerHornII
Free cash flow is more important. Whether we are talking about LTM FCF or FY5 FCF, it's the ultimate source of value for a company.
Posted on 10/9/23 at 4:27 pm to TigerHornII
quote:
I do business valuation as part of my job in M&A daily. EBITDA might not be important to Wallstreetbets smooth brains and technical chart analysis nerds, but for real companies, you'd better believe it is important.
EBITDA is a good metric to level the playing field of companies because it takes a lot variables out of play that aren't core to the business. You can 100% manipulate EBITDA.
The accurate thread title would be that they are UFCF (unlevered free cash flow) positive.
This risk when switching from a growth company to a profit driven company is then you will live and die by that profit multiple, whatever it may be. So they still have a loooong way to go to get to any multiple that would justify a 40B valuation, much less whatever valuation they will ultimately need to justify the return on capital of buying the damn thing.
People who are blindly cheering or booing Musk are equally annoying.
Posted on 10/9/23 at 6:20 pm to barry
Wait until Elon has to refi that debt
Posted on 10/9/23 at 6:49 pm to Texas Tea 123
And if that coincides with a meaningful decline in TSLA’s share price
*explosion gif*
*explosion gif*
This post was edited on 10/9/23 at 6:52 pm
Posted on 10/9/23 at 7:17 pm to CarRamrod
quote:
seems twitter, before Elon, wasnt.
Twitter was cash flow positive with respect to operating activities in both 2020 and 2021.
Posted on 10/9/23 at 7:35 pm to mahdragonz
quote:
Who isn't cash flow positive when you don't include your debts?
The government.
Posted on 10/9/23 at 7:56 pm to stout
quote:I'm not sure anyone thought it would go to zero - but what current price would YOU be willing to pay? If your number is $44 Billion, I'm willing to write you plenty of calls at that strike.
Remember some of you who were melting and saying Elon was running Twitter into the ground and it wouldn't be around much longer? I remember a lot of people saying he would lose that $44 billion and how dumb he is.
Posted on 10/9/23 at 8:25 pm to mahdragonz
quote:
Who isn't cash flow positive when you don't include your debts?
Yeah that was a silly way to put it. IF you exclude Debt for a lot of companies they are "cash flow positive".
Posted on 10/9/23 at 8:28 pm to TigerHornII
quote:
I do business valuation as part of my job in M&A daily. EBITDA might not be important to Wallstreetbets smooth brains and technical chart analysis nerds, but for real companies, you'd better believe it is important.
It's important to the private investors if they exist and for bonuses it may affect but taking out debt and saying something is "cash flow positive" is just silly. You either have more cash coming in than going out or you dont. If debt turns you cash flow negative then you arent cash flow positive, end of story.
I've worked in private equity owned places in finance for over a decade and EBITDA is important to the executives/investors but it is so easily manipulated as well with absolute BS add-backs as well I've seen
This post was edited on 10/9/23 at 8:30 pm
Posted on 10/10/23 at 6:33 am to mahdragonz
While I get Elon is a smart dude and a decent businessman…
quote:
Who isn't cash flow positive when you don't include your debts?
Posted on 10/10/23 at 10:01 am to Texas Tea 123
quote:
They have no cash available to pay it down. Elon fan boys -- this was a horrendous deal, he paid way too much and financed it way too aggressively.
You don’t know any of this.
You’re just as bad as a Elon fan boy with this post.
Posted on 10/10/23 at 10:01 am to saint tiger225
quote:
Threads
What was that
Posted on 10/10/23 at 10:08 am to TigerHornII
quote:
I do business valuation as part of my job in M&A daily. EBITDA might not be important to Wallstreetbets smooth brains and technical chart analysis nerds, but for real companies, you'd better believe it is important.
Congrats! I’m sure no one around here deals with this stuff in their day to day work lives… I didn’t say EBITDA wasn’t important.
Let me ask you this. Every real company you do a valuation on, is it based on EBITDA? No it’s not. Wonder why that is…
Posted on 10/10/23 at 10:09 am to mahdragonz
quote:
Who isn't cash flow positive when you don't include your debts?
Companies that are adding more to their debt
Basically this is the US Government any year they have a budget surplus. The talking heads talk about our surplus, and being fiscally sound with the American people's money. It has been 22 years since that has happened
Posted on 10/10/23 at 10:10 am to barry
quote:
People who are blindly cheering or booing Musk are equally annoying.
Exactly.
Posted on 10/10/23 at 10:40 am to Weagle25
quote:
You don’t know any of this.
You’re just as bad as a Elon fan boy with this post.
Tell me you've never worked in finance without telling me you've never worked in finance. The deal was so bad for Elon and so good for Twitter shareholders that he tried to back out of it numerous times and contract law essentially forced his hand.
They aren't cash flow positive after interest and debt service, therefore there is no operating cash flow available to reduce debt. And if the collateral behind the margin loans starts to deteriorate, this thing can go downhill very quickly.
Edit: I actually agree with you on some of your earlier posts, but you attacked me not knowing what my level of experience and knowledge is here.
This post was edited on 10/10/23 at 10:44 am
Posted on 10/10/23 at 11:25 am to Texas Tea 123
quote:
Edit: I actually agree with you on some of your earlier posts, but you attacked me not knowing what my level of experience and knowledge is here.
Lot of cocky finance bros in here.
I don’t need to know your experience to know you’re talking out of your arse here. You seen their financials? You haven’t.
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