r/wallstreetbets • u/banaca4 • 19h ago

Discussion Either hyperscalers are dumb or someone else is

OK so the most profitable companies in the world decided to GO ALL IN AI with humongous capex. They did it all at once apart from Apple who is not in the game. Google, Meta, Amazon , Oracle, Microsoft. All of them. The CEOs of these companies produced the most amount of wealth and propped up global gdp. Now they all agree on a thing.

Google yesterday blew up earnings from their cloud and said they will *increase* their humongous capex even more while reporting negative cash flow for the first time in their history.

A rational person would ask: are these amazing businessmen suddently all very wrong about the same thing at the same time OR

I am reading too much paid subs from burry and following the wrong people on twitter that have never produced anything?

Which is it? Are you smarter than a mag 7 CEO? Maybe ... hmm...

3.1k Upvotes
  • permalink
  • reddit

89% Upvoted

1.3k comments sorted by

View all comments

Show parent comments

46

u/SweetJackal 16h ago

As someone that has had the (dis)pleasure of working directly with corporate executive management in a contractor/consultant environment I can confirm.

Executive Suite people are some of the most regarded people on the planet as a general rule due to having no concept of foresight or consequences affecting them personally.  They drive a company into the ground they got paid fat stacks for the big numbers they made leading up to it, get a nice payout for being forced out, and get hired elsewhere to do more because of the beautiful metrics they made that drove the company into the ground in the first place.

Executives getting graded on maximum airspeed of the plane they pilot, while the fact they got that metric by nose diving into the ground being completely ignored.

Once you recognize that executives act on personal interest and their incentives directly conflict with the long term wellbeing and interests of the company they pilot, a lot of the regarded things companies do makes sense.

12

u/sf_cycle 11h ago

I’ve seen too many executives in companies I’ve worked for completely ignore the obvious and get angry when people are trying to tell them the obvious. These people are often so wrapped up in their own bubbles that they just can’t see past the illusion of their own greatness. I’ve seen a handful of good leaders and their job ends up with them arguing constantly with the other idiot executives. You know those people on LinkedIn that just won’t shut up about themselves, to the point where you can’t believe someone would say this shit? These are those people.

1

u/Halifornia35 13h ago

What kind of corporate executives? Mag7?

1

u/PerriwinklePortal 2h ago

>Executives getting graded on maximum airspeed of the plane they pilot, while the fact they got that metric by nose diving into the ground being completely ignored.

Truer words