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No matter how the market reacts 3 billions is still 3 billion. People need to stop trying to look for justice in the market trends, investors are not pricing fa
by hjk05 7y ago
No matter how the market reacts 3 billions is still 3 billion. People need to stop trying to look for justice in the market trends, investors are not pricing facebook based on how much cash they have in the vault right this instance, and if a verdict comes in below expectations the price is bound to rise.
Could you imagine the absurdity of them passing down a verdict of “and they shall be fined a billion per month until their stock price falls by at least 10%!”
- colpabar 7y agoI think the point is that we need to punish companies like Facebook in ways that might actually incentivize them to behave differently. If they get slapped with a fine that they can easily pay and then see their stock price go up, what's the point?
- save_ferris 7y agoThe purpose of the fine is to discourage FB from engaging in illegal and unethical behavior. The problem here is that FB sees a $3B fine as the cost of doing business, since they surely made much, much more than $3B engaging in these invasive, user-hostile tactics. If they know that regulators will only come after them for an arbitrarily low percentage of revenue generated from these activities, why would they stop doing them? If a punishment no longer deters bad behavior, then it's no longer a punishment.