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points by JumpCrisscross 13 hours ago | 0 comments

> Actual operating income grew 30%+ q/q

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

google still highly profitable, so operation income indicates how healthy is business, and eps/net income indicates how agressively they reinvesting.

[–] JumpCrisscross 10 hours ago

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.

[–] andriy_koval 10 hours ago

> 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.