π French company Alstom just took a 38% hit in the stock market. The reason? A pesky little cash flow issue. And it's not looking pretty.
THREAD π§΅
1/ Alstom, global #2 in rail transport, warns of negative cash flow in 2023-2024. The forecast is a shocking β¬500-β¬750 million in the red. ππΈ
2/ A negative cash flow doesn't just spell trouble for the company's operations. It's a major red flag for investors, too. π©
3/ Cash flow is the lifeblood of a company. It's the real cash they have on hand. And if it's too low, the company can't invest in growth. Thatβs a big problem. π°π
4/ If Alstom can't fuel its growth, competitors might overtake it. And for investors, a negative cash flow could mean no dividends. Not a good look. ππ«
5/ But here's the kicker: Alstom had previously announced a 'significantly positive' cash flow for the year. Talk about a U-turn! π
6/ The company blames unforeseen issues - delivery delays, program shifts reducing advances, and rising inventory stock. β±οΈπ¦
7/ The result? Alstom lost over β¬3 billion in market cap. Its stock plunged below β¬14, the lowest since 1989. It's a CAC 40 stock we haven't seen tumble like this since 2006. ππ
ROOTE Β©
@rooteai
Powerful ecosystem for Open Mobility. π§ π Access to our AI from anywhere & get Real Time Data across all web platforms. β‘οΈ π€ #MaaS #API #AI #DAO
