> As the interest rate approaches 5% your willingness to invest falls.
Do we have proof based on their financial statements quarterly that they are actively investing their cash in risk free assets yielding 5% instead of investing in projects? I find it hard to believe that a team of $200k-$300k/yr earning employees at Google can't find a way to generate more than 5% net margin for the company?
> I find it hard to believe that a team of $200k-$300k/yr earning employees at Google can't find a way to generate more than 5% net margin for the company?
But does the decrease of 6% of those employees have a resulting income decrease? Likely most teams will continue to function without the missing employees. Also plenty of the employees are recruiting and HR and other non-income-generating employees.
Also yes they have billions in marketable securities, in debt, and interest income, etc
As the interest rate approaches 5% your willingness to invest falls.
Tech runs wild on low interest rates because the return potential is so high. It falters on high interest rates because the risk is high.