/biz/ - Asking for a friend - Business & Finance

Anonymous (ID: 7yB59b4E) Archived

Asking for a friend 02/09/26(Mon)22:12:33 No.61830860

File: IMG_4645.jpg (192 KB, 2048x1238)

Asking for a friend Anonymous (ID: 7yB59b4E) 02/09/26(Mon)22:12:33 No.61830860 Archived

What happens to a company’s stock when you stop buybacks, cut free cash flow by 70%, take out more debt, and invest everything into assets that devalue literally 20% per year?

Can some finance guy tell me? Can somebody also explain why companies that do the aforementioned things trade at a 13-16 multiple? And what that would mean for the mag7 or the SPX/QQQ which are 33% of these indices?

Ty

Anonymous (ID: HxxoC4P7)
02/09/26(Mon)22:16:00 No.61830878

Anonymous (ID: HxxoC4P7) 02/09/26(Mon)22:16:00 No.61830878

>>61830860
America is exceptional

Anonymous (ID: 1vbGqY3q)
02/09/26(Mon)22:53:49 No.61830987

Anonymous (ID: 1vbGqY3q) 02/09/26(Mon)22:53:49 No.61830987

>>61830860
Can you explain why you mald and seethe watching your money evaporate to inflation waiting for the crash that never comes while the stock market keeps making new highs?

Anonymous (ID: aW/j+zpQ)
02/09/26(Mon)23:19:00 No.61831064

Anonymous (ID: aW/j+zpQ) 02/09/26(Mon)23:19:00 No.61831064

As you probably figured out, it's fake growth just for the sake of number go up. The stock market can't really exist without money printing. Less than five companies are actually profitable and all of them have tens to hundreds of billions in debt. Index funds only exist to provide exit liquidity for boomers.