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Nvidia's stock is in a massive bubble, so an all-stock transaction is a no brainer here. They will be getting ARM for free.
by H8crilA 6y ago
Nvidia's stock is in a massive bubble, so an all-stock transaction is a no brainer here. They will be getting ARM for free.
- starfallg 6y agoSoftbank and Vision Fund aren't exactly looking for Nvidia shares though. They are looking for cold hard cash to plug the massive hole in the failing investments.
- BbzzbB 6y agoI think Son is looking for the next big thing, probably something about shared workspaces.
- imtringued 6y agoDidn't they already have such a business? Wasn't it called WorkForMe (Me = Adam Neumann)?
- BbzzbB 6y agoIt is the debacle I was referring to.
- basch 6y agoI've been thinking about this "stock is a bubble" with regard to Nvidia and Tesla. Normal investing logic says to pay attention to P/E. However, if you look at stock as its own currency, basically dollars*managementskill, putting a dollar into Nvidia or Tesla basically means "if I give this money to someone else, they can do better with it than if I hold onto it. It would also be a way of "investing" in a management team, helping support them financially so they can go out and make acquisitions. Then Nvidia and Teslas stock price becomes less "a bajillion times their next five years of earnings" and more "what could these great teams buy or build if we pump them full of cash." Youre investing more than just the future of the current company, as it exists right now. I don't see Softbank wanting Nvidia stock though, unless they intend to liquidate it quickly.