OI isn’t more “actual” than EPS. I remember back when Yahoo traded for less than cash and liquids [1] because investors didn’t trust management not to blow it on stupid shit.
Yes. But framing one as “actual” implies it conveys broad, ground truths better than the other metrics. It does not. The ground-truth metrics would be forward ROA and ROIC.
> The ground-truth metrics would be forward ROA and ROIC.
that's not ground truth in environment when landscape (AI) dramatically changes every quarter, and investments are uncertain bets with huge win potential.
Your ground truth metrics are: 1. How healthy core business: operating income. 2. How aggressively company reinvest: net - operating income.
Its just interesting how wall street views ant and google as the same caliber companies, even google has way more stronger baseline and ant is way more under the water.
[–] andriy_koval 13 hours ago
[–] JumpCrisscross 13 hours ago
OI isn’t more “actual” than EPS. I remember back when Yahoo traded for less than cash and liquids [1] because investors didn’t trust management not to blow it on stupid shit.
[1] https://www.nytimes.com/2015/12/10/business/dealbook/how-to-...
[–] andriy_koval 13 hours ago
[–] JumpCrisscross 10 hours ago
[–] andriy_koval 10 hours ago
that's not ground truth in environment when landscape (AI) dramatically changes every quarter, and investments are uncertain bets with huge win potential.
Your ground truth metrics are: 1. How healthy core business: operating income. 2. How aggressively company reinvest: net - operating income.
[–] epolanski 11 hours ago
[–] andriy_koval 11 hours ago