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In other words, market rewards Facebook for being fined only $5 billion by increasing their market cap $20 billion. Unreal.
by beager 7y ago
In other words, market rewards Facebook for being fined only $5 billion by increasing their market cap $20 billion. Unreal.
- badrequest 7y agoas it so turns out, you can't rely on capitalism to even have any morality, much less enforce one
- deleted 7y ago[deleted]
- jcims 7y agoEh, a capitalist system is going to reflect the moral framework of the participants. The participant here is the stock market, and its moral framework is based on economic growth and profit for shareholders. In that regard this was a good outcome and, as a result, is rewarded.
- asutekku 7y agoWhich means it has no morality no matter how you try to twist it.
- jcims 7y agoSure, no intrinsic morality...more of a passthrough.
- trophycase 7y agoI try to think of it more as utterly sociopathic (in more or less the strict medical definition of the term), and things seem to really make a lot of sense under that framework.
- pgwhalen 7y agoThis is a very strange way to put it. More likely, the fine was priced in with some level of uncertainty, the with the fine having been decided, the market corrected relative to its estimates.
- traek 7y agoFacebook announced earnings today; other new information besides the fine contributed to the after-hours jump.
- drb91 7y ago> by increasing their market cap $20 billion Is this actually meaningful to any company that isn't IPOing or releasing new shares? I am not pro-facebook by any means but it's not clear this means much aside from how much their investors like them, again of questionable value as the majority of votes are privately held by Zuckerberg.
- stubish 7y agoIncrease the value of shares and options and owned by the very people who made the mistake? Yes, increasing an individual's net worth doesn't exactly discourage future mistakes.
- drb91 7y agoUnless Zuckerberg is immediately about to sell I don’t see how this incentivizes any behavior at the company. It’s a trailing indicator of performance, not a leading one, and seems to reflect public opinion more than anything.
- isolli 7y agoWe should never read too much into such numbers, but, technically, expectations of a $25bn fine could explain exactly what you describe.