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Sounds like it didn't exist before either.
by flowtheorist 5y ago
Sounds like it didn't exist before either.
- airstrike 5y agoIt very much existed. Any such stockholder could sell their shares and use the money for whatever purpose. I'm aware you're obviously pushing an agenda / trolling here, but the fact of the matter is that your opinion is factually incorrect. You not understanding the value of something doesn't mean it does not exist.
- flowtheorist 5y ago
- thatguy0900 5y agohttps://www.youtube.com/watch?v=A81DYZh6KaQ https://www.youtube.com/watch?v=A81DYZh6KaQ this might help you.
- flowtheorist 5y agoThanks, I like peanuts so this is very helpful. I've been fighting squirrels for them but if I can make money then that seems easier and less work than the squirrel fights.
- airstrike 5y agoIs your mom's love in the room with you right now? Things don't need to physically exist to have value. And, lo and behold, stocks do exist physically. We just agree to have brokers hold the physical copy and everyone instead just trades the rights to it.
- neximo64 5y agoWell it did, because facebook bought companies with that stock at that higher price. So that 'value' is now within facebook. There's alot of companies on that list, but one such example is Kustomer, Inc. Infact you could go back a bit too, since Whatsapp was bought that way too. I very much doubt the original facebook has much value - it's all in this new stuff. But there was very real value acquired. If there was no value before, then they got all of that for free - and with it very real cash flows and very real money. Mind you too, facebooks revenue hit above $117bn and profit actually went up. Also i'd love to be on the other end of a deal where I got something like that in exchange for 'nothing'.
- flowtheorist 5y agoSo if all that value is gone now does that mean WhatsApp ceases to exist? Or does it have negative value now?
- airstrike 5y agoFB's value is determined by investors' expectations of future cash flows (dividends to equity holders) discounted to present value at a certain rate. Today's price change means people expect to receive less dividends from FB in the future. That cash flow can come from a variety of businesses within Meta, including WhatsApp. It stands to reason that Facebook (as in the "facebook.com" component of Meta) is now regarded by these investors as being worth less than they thought before due to the fact that the company reported a decline in the number of users for the first time in its history.
- flowtheorist 5y agoIt'll soon be worthless. VR is not a moat and it's unlikely Zuckerberg will manage to convince people that putting on a VR headset and hanging out in a virtual space is going to be preferable to hanging out in real life. I'm surprised there wasn't a bigger selloff. At some point the US government will also start tightening data sharing requirements and at that point their ad targeting will be essentially be non-functional.
- neximo64 5y agoIf they have a bigger selloff count me in as a buyer since if they pay a dividend i'll be very quickly getting my money back.
- flowtheorist 5y agoTheir next earnings report is going to be even worse and the one after that even worse than that and so on. They're in a death spiral.
- 5y ago