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The curious thing I'm learning about investors reacting to revealed disasters (caused by poor risk management) is, they don't seem to care as long as the long
by imglorp 8y ago
The curious thing I'm learning about investors reacting to revealed disasters (caused by poor risk management) is, they don't seem to care as long as the long term story is there . A couple of examples:
* The INTC bugs came out around the beginning of the year, but if you zoom out you can barely tell. It was 34 a year ago and it's 52 today.
* FB fell around 6pct for the CA privacy news, to 152, and then a little for the EU hearings, but it's back in spades to over 200 now.
As long as you provide a plausible hole in the sand, it seems the market will gladly stick its head there and ignore whatever us nerds are FUDDing about.
- shittyadmin 8y agoTo be fair, prior Intel issues were mitigated, and even if they couldn't be there might be limited reasons to think that prior issues will impact future sales without sufficient competition in the market. If it turns out that these older Intel chips can't be used for cloud computing anymore then it might just mean that cloud providers like Amazon take a hit but Intel makes a gain in selling them new chips. And Facebook privacy issues are frequently panic'd about briefly and then forgotten. Markets doing that pretty much mirrors the people who "delete facebook" every time there's a panic and then come back minutes later.
- daemin 8y agoAn Intel chip having a flaw will actually help sell more Intel chips in the future as people upgrade their computers and equipment to the "fixed versions".