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This is one of the biggest fallacies. The money these tech giants have should either go toward adding value to the business so it turns its dollars into more th
by loganfrederick 12y ago
This is one of the biggest fallacies. The money these tech giants have should either go toward adding value to the business so it turns its dollars into more than a dollar, or return it to shareholders via dividends/buybacks so the real owners can decide what to do with it. Acquiring companies that will just lose money is robbing the shareholders to give to failed entrepreneurs.
- ilyanep 12y agoIf the shareholders are willing to take the risk of the company they own acquiring other companies (don't acquisitions require board and/or shareholder approval?) then who is to say what that money "should" do?
- rpedela 12y agoI was not commenting on whether or not it is wise to spend billions to acquire company A or B or C. That is a separate question from the question of whether that behavior indicates a bubble. And like I said previously, it depends where the money comes from. If it is mostly debt, then it probably is a bubble. But if it is mostly Google's, Facebook's, etc insane profits, then it probably does not indicate a bubble.