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by ericd 11 days ago
I think that's capex driving that, not opex, since they got those two (fragile) leases in place?

They can stop building out their capacity there, if they want.

1 comments

Right but the word "capex" isn't a magical amulet that makes balance of payments and cash flow problems disappear. Plenty of companies have been wrecked by overextending on capital spending.
Yeah, for sure, but it's also usually something that's a bit easier to trim when needed, unless they got way ahead of themselves and went deep into debt to do it. Most public companies have much worse debt:equity ratios.
And if the IPO does a WeWork, SpaceX's debt:equity ratio gets really bad really fast
I guess we'll see soon :-)