Nancy Tangler
👤 SpeakerAppearances Over Time
Podcast Appearances
I think it's important to remember that this is a company that's always had a ton of debt.
Debt to equity was 427 percent at the end of the quarter.
That's down from 780 percent year over year.
This is all before
They issued the $18 billion in debt for the open AI data center build out.
This company has a history of using debt, but the PPE is up 130% year over year while debt is only up nine.
So debt to equity will decline.
It is.
It's a pair trade, though.
What concerns me more is the concentration in the market around open AI.
And I think that has to sort itself out.
Now, Satya Nadella would tell you that data centers are fungible.
If we don't use it for this, we'll use it for that.
And I think that's certainly true.
But I am concerned about the spend.
I mean, that's a company with a burn rate, right?
Open AI.
Yeah.
Ten billion in revenues and trillions in
and spend.