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Renowned Hedge Fund Manager Michael Burry Slams US Tech Giants for Underestimating Depreciation Costs to Boost Earnings
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Famous hedge fund manager Michael Burry published a post on social platform X accusing US tech giants of artificially inflating earnings by extending the useful life of their assets to underestimate depreciation costs, a fraud Burry described as one of the most common in modern history. Burry elaborated that massive capital expenditures on Nvidia (NVDA.US)'s chips or servers, which have product cycles of just 2-3 years, shouldn't be viewed as an extension of equipment lifespan, but this is exactly what all mega tech firms are doing. In Burry's estimate, large tech stocks will underestimate depreciation costs by USD176 billion in 2026-28. By 2028, Oracle (ORCL.US) and Meta (META.US) will have overstated earnings by 26.9% and 20.8%, respectively, and the situation could be even worse. More details, as Burry said, will be released on November 25. AAStocks Financial News |
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