Category: Corporate Governance

Coinbase Is A Bankruptcy Waiting To Happen

Coinbase Is A Bankruptcy Waiting To Happen

Coinbase (COIN), is a walking bankruptcy absent an immediate, dramatic recovery in Retail customer sentiment. The probability of an imminent resurgence in Retail enthusiasm for Crypto is close to zero given 2022's various Crypto failures including the recent FTX fraud (FTX founder Sam Bankrun Fraud needs to be arrested ASAP). It hardly bodes well for … Continue reading Coinbase Is A Bankruptcy Waiting To Happen

Coinbase: What’s Yours Is Mine

Coinbase: What’s Yours Is Mine

Just a reminder that if Coinbase (ticker: COIN), was to file for bankruptcy protection, customer assets would be considered Coinbase property. Why would any retail or institutional investor ever engage Coinbase as a custodian given that risk? The excerpt below is from COIN's 10Q filing: Moreover, because custodially held crypto assets may be considered to … Continue reading Coinbase: What’s Yours Is Mine

Tech Company Layoffs Are Rarely “One & Done”

Tech Company Layoffs Are Rarely “One & Done”

When it comes to Technology companies, headcount reductions are rarely "one & done". This used to be especially true of Bay Area Technology companies which are famous for lacking operating discipline (i.e. cost discipline). However, the Bay Area aversion to running profitable businesses has permeated the Tech sector over the past 12 years of easy … Continue reading Tech Company Layoffs Are Rarely “One & Done”

Tech Layoffs Are Spiking

Tech Layoffs Are Spiking

More than 24,000 Technology sector employees have been laid off month-to-date making November the worst month of the year for layoffs as Technology companies prepare 2023 budgets. Q4 2022 could rival Q2 2020 when more than 60,000 Technology sector employees were laid off. Q4 2022 is tracking at approximately 37,000 Technology sector employee layoffs. Our … Continue reading Tech Layoffs Are Spiking

Zuckerberg & The Metaverse Underscore Why CEOs & Management Teams Matter

Zuckerberg & The Metaverse Underscore Why CEOs & Management Teams Matter

When you invest in a company (public or private), you're betting on the CEO and management team, not a product or service. A CEO can torpedo or lift a company's prospects overnight. Microsoft under former CEO Steve Ballmer and current CEO Satya Nadella underscores the importance of the CEO. Ballmer was a Marketing exec that … Continue reading Zuckerberg & The Metaverse Underscore Why CEOs & Management Teams Matter

META Ought To Split In Two

META Ought To Split In Two

META will remain a broken company until Zuckerberg allocates the same passion toward repairing the core business as he has allocated toward building the metaverse. However, I have never met an entrepreneur that felt equally passionate about a shiny new object AND a repair job. Therein lies the rub. Zuckerberg's interests have clearly evolved. META's … Continue reading META Ought To Split In Two