ENRON accounting gone viral. Wall Street eagerly, anxiously awaited NVIDIA's quarterly earnings report today and breathed a deep sigh of relief when it came out higher than expected. But what does that really mean if NVIDIA's sales are driven by tech titans who are puffing up their own earnings reports with unrealistic depreciation schedules?
Reuters ( https://www.reuters.com/sustainability/sustainable-finance-reporting/michael-burry-big-short-fame-deregisters-scion-asset-management-2025-11-13/ ) : > > Last month, Burry posted an image, opens new tab of his character from > "The Big Short" movie and warned of bubbles, saying, "Sometimes the only > winning move is not to play." > > "Burry's decision feels less like 'calling it quits' and more like > stepping away from a game he believes is fundamentally rigged," said Bruno > Schneller, managing director at Erlen Capital Management. > > Burry has argued that as companies such as Microsoft (MSFT.O), opens new > tab, Alphabet-owned Google (GOOGL.O), opens new tab, Oracle (ORCL.N), > opens new tab and Meta (META.O), opens new tab pour billions into Nvidia > chips and servers, they are also quietly stretching out depreciation > schedules to make earnings look smoother. > > Between 2026 and 2028, those accounting choices could understate > depreciation by about $176 billion, inflating reported profits across the > sector, he estimated. > AI-related stocks have accounted for 75% of the S&P 500 index's (.SPX), > opens new tab returns since November 2022, when OpenAI launched ChatGPT, > JPMorgan Asset Management wrote in September. > -=-=-=-=-=-=-=-=-=-=-=- Groups.io Links: You receive all messages sent to this group. View/Reply Online (#39359): https://groups.io/g/marxmail/message/39359 Mute This Topic: https://groups.io/mt/116383307/21656 -=-=- POSTING RULES & NOTES #1 YOU MUST clip all extraneous text when replying to a message. #2 This mail-list, like most, is publicly & permanently archived. #3 Subscribe and post under an alias if #2 is a concern. #4 Do not exceed five posts a day. -=-=- Group Owner: [email protected] Unsubscribe: https://groups.io/g/marxmail/leave/13617172/21656/1316126222/xyzzy [[email protected]] -=-=-=-=-=-=-=-=-=-=-=-
