New York Times (July 31)
“The technology sector is facing another rough patch, after Microsoft reported mixed quarterly earnings and its shares tumbled. The company’s results are fueling more concern among investors about whether hefty spending on artificial intelligence will pay off, and how long that might take.” The tech giant, however, is confident that its efforts will pay off.”
Tags: AI, Concern, Confident, Investors, Microsoft, Pay off, Quarterly earnings, Results, Shares, Spending, Technology sector, Tumbled
Financial Times (July 27)
“Ending the tyranny of quarterly earnings is an idea that is on the march. The case for reforming shareholder capitalism is strong.” An “investment drought” is resulting from the focus on short-termism. “With healthy profits and a near zero cost of capital, now ought to be the time to lay down plans for the future. Today’s investments yield tomorrow’s dividends. But listed companies are almost uniformly opting for dividends today.” In the U.S., leading listed companies are, on average, investing only one dollar for every $8-$9 they return to shareholders.
Tags: Cost of capital, Drought, Future. Dividends, Investment, Profits, Quarterly earnings, Shareholder capitalism, Shareholders, Short-termism, U.S.
