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We believe the $LYFT IPO will be successful and spur greater risk taking, allowing Uber to easily cross the $100 billion valuation mark. This will make the public markets “test” more difficult after the initial euphoria and lock up period is over. threadreaderapp.com/thread/1106888…
In full agreement with @profgalloway on this, even Lyft's share price outlook. Must read. profgalloway.com/lyft-off?utm_s…
Excerpts from a Harvard study on financial reporting for the Internet era. They interviewed several CFOs of leading technology companies and senior analysts of investment banks who follow tech stocks.
“The CEOs principal aim is not necessarily to judiciously allocate financial capital but to allocate precious scientific and human resources to the most promising projects and pull back and redeploy those resources in a timely manner when the prospects of specific projects dim."
“An idea with uncertain prospects but with at least some conceivable chance of reaching a billion dollars in revenue is considered far more valuable than a project with net present value of few hundred million dollars but no chance of massive upside.”
“CFOs admit that they cannot justify their market cap based on traditional metrics. They conjecture that their market values might be a sum of best-case scenario payoffs. One CFO said that her valuation should be considered on a per idea basis instead of a per earnings multiple.”
“Many CFOs consider financial reporting to be an exercise in mere regulatory compliance and find the resources spent on audits and financial reporting to be a waste of shareholder money.”
"One CFO commented that they now avoid inviting company accountants to their strategy meetings, while another said that CPA certification is considered a disqualification for a top finance position." I'm sure this ends well.
