Macy's reveals $100 million accounting error, not impacting core financials
From Nasdaq: 2024-12-02 15:21:00
In this podcast, Motley Fool analyst Jason Moser and host Ricky Mulvey discuss the mysterious disappearance of over $100 million, the impact of weight loss drugs on junk food manufacturers, and offer advice for investors seeking artificial intelligence pick-and-shovel plays.
Macy’s reports a surprising accounting error, revealing that a single employee made an erroneous accounting accrual of over $100 million in cumulative delivery expenses from 2021 to 2024. The error was not embezzlement, but a massive mistake that went undetected for years.
Despite the accounting error, Macy’s assures that it did not impact the company’s cash management activities or vendor payments. The error was related to small package delivery expenses, which, in the context of Macy’s overall business, is not a significant financial hit.
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For more in-depth financial analysis and investment advice, investors can check out the Motley Fool’s podcasts and beginner’s guide to investing in stocks. The Stock Advisor team has identified 10 best stocks for investors to buy now, which could potentially yield significant returns in the coming years. Jason Moser and Ricky Mulvey discuss potential companies to steal from in a hypothetical scenario. They touch on the changing relationships between weight loss drugs and processed foods, with companies like PepsiCo and Conagra Brands adapting to new consumer preferences. The impact of weight loss drugs on the food industry is seen as a significant economic trend for the future. Morgan Stanley predicts a significant increase in the number of Americans using weight loss drugs by 2035, potentially reaching 24 million. Jason Moser discusses the trend and potential long-term implications, emphasizing the importance of healthcare investments. There is also a discussion on Texas Pacific Land Corporation’s investor hype and valuation increase.
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Texas Pacific Land Corporation’s business model is fundamentally sound, with significant value in its assets. Investors seeking picks and shovels plays in AI should prioritize understanding how individual companies benefit from trends, focusing on fundamentals, financials, and leadership. Valuation and enthusiasm should be considered in making investment decisions.
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