Note: This post first appeared on Patreon on 12 Jun 2018
A week ago, I was talking about shares in companies like Tesla going to zero. Regarding Tesla specifically, I was comparing it to Amazon circa February 2001, when Lehman Brothers' Ravi Suria was writing about Amazon’s facing a “creditor squeeze”. And right on cue, Tesla has now announced a massive round of layoffs. Here's how I see it.
The make or break moment for Amazon
Before I get into Tesla's announcement, let's go back to 2001. Here's how I described it five months ago. Focus on the parts I have highlighted in bold.
The denouement came in February 2001 with a negative research note from Lehman Brothers’ Ravi Suria. The Lehman convertible bond analyst covered Amazon because the Internet company had issued convertible debt at the...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.