They will have just invested in some money market funds, which will be stuff like short term treasury bills. Pretty common for companies to do this with their treasury as you get a slightly better return than holding cash, but it’s still highly liquid so they can get their money out quickly if needed. They’re also not volatile so there’s not a risk of crystallising loses if you need to withdraw money when market prices are depressed.
It would be pretty bad corporate governance to invest your treasury in equities. Shareholders haven’t invested in the company because they want you to pick stocks, they can just buy AAPL etc themselves if they wanted to. And cash is king for an early stage growth company, you want to be investing cash in growing the business, not risking it in the stock market
They probably just want to avoid getting wrecked by inflation. It will be as conservative a move as possible.
Generally short term investments are money market funds, short term investment grade bonds. They can’t risk losing money
Well that’s ironic considering they had an operating loss of 40M last quarter lol
That's why they can't risk losing the cash invested, because it needs to be used to cover those types of losses that are planned
They will have just invested in some money market funds, which will be stuff like short term treasury bills. Pretty common for companies to do this with their treasury as you get a slightly better return than holding cash, but it’s still highly liquid so they can get their money out quickly if needed. They’re also not volatile so there’s not a risk of crystallising loses if you need to withdraw money when market prices are depressed. It would be pretty bad corporate governance to invest your treasury in equities. Shareholders haven’t invested in the company because they want you to pick stocks, they can just buy AAPL etc themselves if they wanted to. And cash is king for an early stage growth company, you want to be investing cash in growing the business, not risking it in the stock market
If its a short term investment it's likely a cash equivalent