What we need to see is the statement of cash flows.
Whats happening to that cash balance?
People are missing the point IMO - the reinvestment needs is what matters. A) how large are they? B) How will they change over-time? C) How does a slow down in capabilities and closing of the gap by China + price-competition affect their cash flows from operations net of the reinvestment (e.g. will it draw down their cash balance).
You can only hold the perception of increasing capabilities for so long - humans are very adaptive as we are seeing and scare-tactics do not work forever.
What we need to see is the statement of cash flows.
Whats happening to that cash balance?
People are missing the point IMO - the reinvestment needs is what matters. A) how large are they? B) How will they change over-time? C) How does a slow down in capabilities and closing of the gap by China + price-competition affect their cash flows from operations net of the reinvestment (e.g. will it draw down their cash balance).
You can only hold the perception of increasing capabilities for so long - humans are very adaptive as we are seeing and scare-tactics do not work forever.