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It does if they use their stock price as a benchmark, which they do if it is a part of their compensation. Higher interest rates push investors to sell their Fa
by nequo 4y ago
It does if they use their stock price as a benchmark, which they do if it is a part of their compensation. Higher interest rates push investors to sell their Facebook shares and buy bonds instead. This means that Facebook needs to earn higher profits in order to pull its stock price upwards. Low-IRR projects are eliminated and with them the people who worked on them.
- dangwhy 4y ago> interest rates push investors to sell their Facebook shares and buy bonds instead. Wouldnt the stock price drop with people selling the stock. That didn't happen with meta with interest rate hikes.
- nequo 4y agoYou’re right, it should, unless Facebook counterbalanced the hikes with positive news during those days/weeks.