2/14/2023 0 Comments Nvidia book value per share![]() Investors punished the stock along the way, sending it down to $27.04 - or nearly a 60% loss. It had to write off most of the goodwill over the next few months, and one year later that line item had shrunk to $37 billion. That's what happened in AOL Time Warner's case. The problem with inflating your net assets with goodwill is that it can - being intangible after all - go away if the acquisition or merger doesn't create the amount of value that was expected. The $128 billion of goodwill in this case was created when AOL and Time Warner merged in 2000. Goodwill is simply the difference between the price paid for a company during an acquisition and the net assets of the acquired company. It had $209 billion of assets on its balance sheet, and $128 billion of that was in the form of goodwill and other intangible assets. Could this be the case with NVIDIA?īefore we answer that, let's look at what could go wrong.ĪOL blows up In early 2002, AOL Time Warner was trading for $66.27 per share. ![]() Sometimes goodwill, especially when it's excessive, can foreshadow problems down the road. ![]() NVIDIA (Nasdaq: NVDA) carries $967.1 million of goodwill and other intangibles on its balance sheet. He currently travels the globe for TMF, bringing back video reports on conferences and companies that matter for investors. Rex Moore spent his formative years in Texas, and fought beside Davy Crockett at the Alamo.
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