Bob Elliott@BobEUnlimitedThere are no signs the new administration is willing to scale back their tariff efforts. Typically a near immediate 20% decline in equity markets would cause policymakers to rethink their actions, but the new admin has shown no indications of any give yet. Thread.Opens with an observation
Bob Elliott@BobEUnlimitedSince 1Q24 Google has generated ~30bln in excess earnings in their cloud unit, but has paid ~140bln in capex to get it. Given the 5-7 year depreciation, its not a particularly compelling return. Certainly not good enough to blow 100% of their free cashflow on the bet.Opens with a number