Star in the Sky
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Michael Burry Warns of Tech Giants Understating Depreciation Impacting Profits
Michael Burry, known for predicting the 2008 financial crisis, has raised concerns about major tech companies potentially understating depreciation, leading to inflated profits. He highlighted that extending the useful life of assets could result in a $176 billion profit overstatement. This warning has sparked discussions about the impact on companies like Oracle and Meta. Morgan Stanley and Bank of America have also issued warnings about the potential negative effects of underestimated depreciation on tech giants' profitability.
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