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I’m not fan of facebooks core product but I’d rather them dump this billions into something that employs people, moves the needle on vr and maybe gets some unde

by quags 4y ago

I’m not fan of facebooks core product but I’d rather them dump this billions into something that employs people, moves the needle on vr and maybe gets some underlying tech in the future rather than just more stock buybacks or buying out and killing another company.

drexlspivey 4y ago
Stock buybacks is a form of returning money to investors which they then can decide themselves what are they going to do with. If they want to fund a VR company they can do it themselves.
- quags 4y ago
  The point I’m making is I believe Facebook investing in itself, is better than the alternatives like returning capital. Investors in Facebook also bought the stock, assuming they did any dd, that gives Zuck more voting rights with less shares. So until he is out or sells shares investors don’t have the same control they would under most other companies and thus really can’t decide for themselves. I believe the ceo has over 50% voting rights with under 13% owner ship. Facebook core product may not grow. Better for them to try to grow like Microsoft and have a lost decade than become the next xerox or yahoo.
- staticman2 4y ago
  By that logic Apple shouldn't have launched the Iphone, right? If investors wanted to fund a phone company they could have done it themselves?
  - drexlspivey 4y ago
    Apple is currently returing all of it's net profits to shareholders via buybacks and dividends so it's an unfortunate example. Should they have spent the money to the apple car and other moonshots in your opinion?
    - dougmwne 4y ago
      Apple is totally dumping huge sums on its own VR project which doesn’t have a single customer while the Quest has millions of users. Same with the Apple Car project. Strange double standard to call out Meta for trying to break into a new product category but give Apple a pass.
rcme 4y ago
But they're buying back stock too. 40B worth: https://www.cnbc.com/2023/02/01/facebook-parent-meta-announces-40-billion-stock-buyback.html https://www.cnbc.com/2023/02/01/facebook-parent-meta-announc...

by quags 4y ago

drexlspivey 4y ago

Stock buybacks is a form of returning money to investors which they then can decide themselves what are they going to do with. If they want to fund a VR company they can do it themselves.

quags 4y ago
The point I’m making is I believe Facebook investing in itself, is better than the alternatives like returning capital. Investors in Facebook also bought the stock, assuming they did any dd, that gives Zuck more voting rights with less shares. So until he is out or sells shares investors don’t have the same control they would under most other companies and thus really can’t decide for themselves. I believe the ceo has over 50% voting rights with under 13% owner ship. Facebook core product may not grow. Better for them to try to grow like Microsoft and have a lost decade than become the next xerox or yahoo.
staticman2 4y ago
By that logic Apple shouldn't have launched the Iphone, right? If investors wanted to fund a phone company they could have done it themselves?
- drexlspivey 4y ago
  Apple is currently returing all of it's net profits to shareholders via buybacks and dividends so it's an unfortunate example. Should they have spent the money to the apple car and other moonshots in your opinion?
  - dougmwne 4y ago
    Apple is totally dumping huge sums on its own VR project which doesn’t have a single customer while the Quest has millions of users. Same with the Apple Car project. Strange double standard to call out Meta for trying to break into a new product category but give Apple a pass.

rcme 4y ago

But they're buying back stock too. 40B worth: https://www.cnbc.com/2023/02/01/facebook-parent-meta-announces-40-billion-stock-buyback.html https://www.cnbc.com/2023/02/01/facebook-parent-meta-announc...