| ▲ | toomuchtodo 2 hours ago |
| Apollo Group has $1T assets under management, I believe them over most folks on HN. Their argument that the Mag 7 is burning up all of their free cash flow is factually accurate, as the returns are not materializing for the investments being made (ie underperformance). |
|
| ▲ | davidpapermill 2 hours ago | parent | next [-] |
| The Mag 7 spending around $700B on capex this year, expected around a trillion next year. That's more than their combined FCF, and they're borrowing to bridge the gap. |
| |
| ▲ | Danox 2 hours ago | parent [-] | | One is not spending anything out of the ordinary up until this point in comparison to their competition. But the Apple Silicon design group might start spending some money on something practical, something that might begin the typical Apple long-range process of replacing two or three existing companies within their current supply chain, but that’s nothing new over the last 25 years. | | |
| ▲ | toomuchtodo 2 hours ago | parent [-] | | It is a bit unfair to lump Apple in with everyone else in the Mag7, as their strategy is arguably reasonable and prudent for the current position of the hype circle. Apple Silicon was a spectacular decision and investment. Everyone else has lost their damn mind. |
|
|
|
| ▲ | roboror 2 hours ago | parent | prev | next [-] |
| If we're doing money=smart, the mag 7 control almost $4T in assets and cash, so wouldn't you trust them even more? |
| |
| ▲ | toomuchtodo 2 hours ago | parent [-] | | Not based on the evidence of how they allocate capital. Meta wasted $80B on the Metaverse, for example. Apollo allocates capital as their day job. Mag7 allocates by vibes. https://finance.yahoo.com/sectors/technology/articles/mark-z... https://www.nytimes.com/2026/03/19/technology/mark-zuckerber... | https://archive.today/iEGAj | | |
| ▲ | triceratops 2 hours ago | parent [-] | | > Apollo allocates capital as their day job. Mag7 allocates by vibes Lol what in the world? Is running a trillion dollar corporation anything other than allocating capital? You can argue that Meta made a poor capital allocation decision with VR and perhaps continues to do so with AI. | | |
| ▲ | toomuchtodo 2 hours ago | parent [-] | | I have an opinion based on the data, yours may differ. Favorite this thread for when the music stops. It has before (1999-2000, 2007-2008), it will again. | | |
| ▲ | triceratops 2 hours ago | parent [-] | | I'm objecting to your categorization of the job of running one of the Mag7s as something other than "capital allocation". The CEO of Meta or Amazon or any of these other companies allocates capital all day long. They do it differently than an asset manager like Apollo for sure, and sometimes make worse decisions. But it's in the same category. |
|
|
|
|
|
| ▲ | petesergeant 2 hours ago | parent | prev | next [-] |
| > Apollo Group has $1T assets under management, I believe them over most folks on HN Ah, the old _argumentum ad giletum Patagoniae_ |
| |
|
| ▲ | re-thc 2 hours ago | parent | prev | next [-] |
| > Apollo Group has $1T assets under management, I believe them over most folks on HN If only that's a measure of if they know how to time the stock market. The real measure is how much they earn not if their sales or marketing department manages to get more customers. |
|
| ▲ | bitexploder an hour ago | parent | prev [-] |
| [flagged] |
