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Square to acquire Afterpay for $29B

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Re: Square to acquire Afterpay for $29B

#351

Post by softveda »

LilBytes wrote: post #342
nsonha wrote: post #323

Earlier quoted context omitted.

250k net means ~230k + super? Is this contracting? And may I ask your rank in org?

$150k salary, 10% super and the rest I get in bonuses. The bonus break down is: 10% of my salary paid quarterly if I hit my targets and I get around 0.9% profit sharing. My position title is just SRE. Same rank as the other engineers. CEO > VP of Engineering > All the SWE/SREs sit here

Are you SRE in a tech company or a non tech company (e.g. Bank) ? Are your targets financial or technical (e.g. RTO,MTTR, SLO etc.)

Re: Square to acquire Afterpay for $29B

#352

Post by LilBytes »

softveda wrote: post #351
LilBytes wrote: post #342

Earlier quoted context omitted.

$150k salary, 10% super and the rest I get in bonuses. The bonus break down is: 10% of my salary paid quarterly if I hit my targets and I get around 0.9% profit sharing. My position title is just SRE. Same rank as the other engineers. CEO > VP of Engineering > All the SWE/SREs sit here

Are you SRE in a tech company or a non tech company (e.g. Bank) ? Are your targets financial or technical (e.g. RTO,MTTR, SLO etc.)

Yeah, tech company.

Targets change quarter to quarter and are what ever I and my Manager/VP decide.

Typically the targets are technically focused. E.g. product needs in the next 12 months require specific SLO/SLI's being met, in addition to some future customers who we're looking to onboard require us to be compliant in certain security standards. Those are my goals for this quarter.

Re: Square to acquire Afterpay for $29B

#353

Post by imtringued »

shell0x wrote: post #93
ttam wrote: post #90

Earlier quoted context omitted.

Ironically, Klarna, a Swedish-founded company, is pretty big in the BNPL market according to https://www.marketwatch.com/story/the-buy-now-pay-later-wave... "In Sweden, home to BNPL provider Klarna, installments accounted for 23% of e-commerce transactions last year."

Sorry, I should have said Germany instead of Europe since the European market is pretty diverse. The German word for debt is schuld(Schulden) , which has the same meaning as guilt and is associated with something bad.

The Germans are so spooked by debt they rather hand the debt to weaker countries even though the German economy can sustain much higher debt levels than their neighbors. It's completely backwards.

Re: Square to acquire Afterpay for $29B

#354

Post by imtringued »

systemvoltage wrote: post #99
babesh wrote: post #64

Earlier quoted context omitted.

There have been tens of trillions of dollars and other currencies created from thin air the last year and a half. And more is being created currently. This isn’t just the US government. It’s basically all governments in the world. EDIT: Fed has been purchasing 120b of assets per month https://cheddar.com/media/federal-reserve-to-keep-up-asset-p... Federal government has spent at least 3.5 trillion on COVID-19. EDIT2:…

I said that the other day and someone just replied snarkly "Trickle up economics". That's like saying Thermodynamics is trickle up Chemistry. There is value in looking at macro-ecomonic concepts especially when it comes to government spending, federal reserve interest rates and inflation.

One of the weird things about trickle down economics is that the rich's favorite past time is earning more than they spend. Basically the entire thing is built around the idea that dumping money into a portion of the economy that doesn't have to pay taxes is good while ignoring that this money was created through debt which eventually is converted to government debt through various means. When the debt burden grows, tax revenue has to go up as well but you are sending all the money into a no tax black hole meaning the tax revenue vs debt payment ratio gets out of whack.

How is this supposed to work again?

I'd consider "Trickle up" anything that creates full employment. If employees are earning more money they pay more taxes. It kind of does work precisely because the tax burden is so high.

Re: Square to acquire Afterpay for $29B

#355

Post by dna_polymerase »

leppr wrote: post #338
dna_polymerase wrote: post #297

Earlier quoted context omitted.

No, it's a change in methodology. The "money printer goes brr"-crowd is just unable to digest information.

No, that "crowd" is talking about the 30% increase in a year of M2 money supply, which is unprecedented in US history. The gymnastics going on with the M1 curve don't change that underlying fact, although it does provide a convenient strawman deflection in arguments so less informed people stop at this rebuttal and believe the whole "huge money supply increase" narrative is a hoax.

Yawn, any reason you did not link to the M2 graph at FRED? Maybe, because the bump is also a change in methodology? The money printer has been running for decades, but all of a sudden there is a problem? All that money is stuffed into equities and has no impact on inflation. But who gives a shit if one can talk about Bitcoin instead.

Re: Square to acquire Afterpay for $29B

#356

Post by bluecalm »

skohan wrote: post #282
bluecalm wrote: post #273

Earlier quoted context omitted.

Imagine everyone gets 1000 USD loan, freshly printed USD from the government. Money supply just increased by 300billion (assuming it's for US citizens). Does it mean inflation follows? Probably not because people know they have to pay the money back. The price of assets people really need/want or those that are undervalued is going to go up though. I believe the situation is the same with stocks. They were criminally…

What's your reasoning for concluding that stocks were substantially undervalued? Because another way to read the situation is that stocks are simply the asset of last resort. In a world with no interest, you can't park money in bonds (or CD's etc.) so you've basically got stocks, real-estate and commodities left as options. Large-scale asset managers are not going to park billions of dollars under the mattress, so ba…

No deep analysis on this one. I just think it's a crazy good deal to be able to buy stock of the biggest corporations which lead humanity technological progress, have huge political influence and even at today profit levels return 3-4% per year (in reality much more as a lot of money is invested in research/new projects which are going to be profitable in the future). I think Apple/Amazon/Alphabet/MSFT etc are going make even more in the future and current price is a steal, especially considering those are highly liquid assets with 0 cost of maintenance.

Re: Square to acquire Afterpay for $29B

#357

Post by JohnJamesRambo »

fungizid wrote: post #212
JohnJamesRambo wrote: post #188

Earlier quoted context omitted.

Yes money is all a joke right now. https://fred.stlouisfed.org/series/M1SL

The steep increase at the end mostly does not reflect a change in economic fundamentals but rather banks relabeling savings accounts as transaction accounts in response to regulatory changes. If you look at M2 instead of M1, the increase disappears. More info: https://fredblog.stlouisfed.org/2021/05/savings-are-now-more... (Edit: Updated link to a more recent blog post)

I still see a curve blasting off at an unprecedented accelerated rate after the jump. And after 2009 doesn't look great either.

Re: Square to acquire Afterpay for $29B

#359

Post by leppr »

dna_polymerase wrote: post #355
leppr wrote: post #338

Earlier quoted context omitted.

No, that "crowd" is talking about the 30% increase in a year of M2 money supply, which is unprecedented in US history. The gymnastics going on with the M1 curve don't change that underlying fact, although it does provide a convenient strawman deflection in arguments so less informed people stop at this rebuttal and believe the whole "huge money supply increase" narrative is a hoax.

Yawn, any reason you did not link to the M2 graph at FRED? Maybe, because the bump is also a change in methodology? The money printer has been running for decades, but all of a sudden there is a problem? All that money is stuffed into equities and has no impact on inflation. But who gives a shit if one can talk about Bitcoin instead.

1. It has been linked many times in this thread.

2. No.

3. Not at a comparable rate as is evident from the graph.

4. Are equities and other assets completely disconnected from the consumer economy? Many of the new rich and retirees will cash out or take loans against their assets.

5. Economically speaking Bitcoin is inconsequential in this story. Careful using its proponents as another strawman.

Re: Square to acquire Afterpay for $29B

#360

Post by Decker87 »

mustardo wrote: post #81
kevindong wrote: post #80

Earlier quoted context omitted.

The acquisition is entirely in stock, so very little actual cash is changing hands. According to the Afterpay investor relations site, Afterpay's gross revenue for FY21 (ended June 30, 2021), assuming constant currency exchanges rates, was $978 million AUD [0]. If you subtract out the first half of FY21's revenue ($385.2 million AUD) [1], we arrive at an implied revenue of $592.8 million AUD for the second half of FY…

The profit margin per "Revenue" dollar is so small for a payment processor it always seemed like a strange metric to value a payments company on for me, as they are essentially just a middle man for this "Revenue" taking it from the customer and giving it to the merchant. Afterpay does typically have higher merchant fees than a regular CC gateway tho

They take like 5% of the money. That's pretty dang significant.
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