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Its profit, its going to be volatile. Honestly some folks will want to say the sky is falling but a lot of folks will point out that any profit at all for a com
by mikeryan 15y ago
Its profit, its going to be volatile. Honestly some folks will want to say the sky is falling but a lot of folks will point out that any profit at all for a company growing like Facebook is a waste of perfectly good cash.
- moreorless 15y agoPlease explain why it is bad for a growing company to turn a profit?
- kragniz 15y agoI assume one could say the spare money could be spent on growing the company, making more money in the longer run. (disclaimer: I have no idea what I'm talking about)
- eldavido 15y agoRight. Good corporate governance points toward the maximization of long-term shareholder value, as measured by the present value of payments to shareholders (dividends, buybacks, etc.) http://en.wikipedia.org/wiki/Net_present_value http://en.wikipedia.org/wiki/Net_present_value Silicon Valley has a somewhat bizarre culture of viewing dividend payments as "defeat", as in, "We can't find anything better to do with the cash because we aren't innovative, so we're giving it back to our investors". This is where the (strange) logic of profit=evil comes from in these conversations.
- nikcub 15y agobecause it indicates that you believe insting in your business will yield a greater return than leaving the money in the bank or with bonds. considering that Facebook are about to raise $5B it isn't unreasonable to expect them to ramp up spending with revenue as well.
- jacques_chester 15y agoYou'd think so, but Facebook is also planning to raise $5 billion dollars and then ... figuratively put it in the bank.