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Rather than mad, perhaps the investors are taking it as a signal that Facebook management, by buying other companies in mostly stock deals, believes that Facebo
by tedsanders 13y ago
Rather than mad, perhaps the investors are taking it as a signal that Facebook management, by buying other companies in mostly stock deals, believes that Facebook stock is overvalued.
That could be a rational rather than irrational explanation.
- vanwesson 13y agoBingo. The Oculus and WhatsApp deals have added up to billions "spent" via mostly stock instead of cash. This is almost certainly due to insistence from the Facebook execs themselves, who clearly are expecting the price of their stock to fall in the long term and are attempting to extract some value from it while the price is still high.
- danieltillett 13y agoThe real evidence for this will be if Facebook buys TimeWarner.
- psbp 13y agoI didn't mean mad literally. I meant the intent that you mentioned.
- danieltillett 13y agoThere are only two ways to look at this and neither are good for the share price. 1.Z knows what he is doing and thinks the share price is overvalued. 2. Z has no idea what he doing. Who wants to own a company with incompetent management that can't be voted out by the shareholders.