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In comparison, the Airbus A380 cost $11bn to develop. Is this really wise capital allocation by the street? Imagine what valuable technology could be built with
by curiousDog 13y ago
In comparison, the Airbus A380 cost $11bn to develop. Is this really wise capital allocation by the street? Imagine what valuable technology could be built with this money. I for one, sold my stock in facebook just now.
- adventured 13y agoNo it's not wise (regarding the cash), but then a large portion of the value isn't real and will never be real; it's bid-up paper trading at 100 times earnings. Swapping one piece of overvalued paper for another, is most of the deal (I'd take the FB paper personally, it at least has some earnings behind it). And keep in mind, this isn't capital allocation by the street, it's capital allocation by Zuckerberg, he controls Facebook. This crashes and burns, it's solely on his head.