Facebook Purchases WhatsApp for $16 Billion
- Thread starter tangy
- Start date
They aren't a retail business, buying a physical store that needs to make a return by a certain date.
They are cementing their position as the default global network of communication. Putting themselves to become a globally indispensable part of the planet's communications infrastructure for decades to come.
Making a return fast on their investment doesn't seem to be the issue here. I'd actually argue that a long term vision driven by this kind of huge ambition that isn't focused on short/medium term revenue goals will deliver more revenue/success/power over time and is why I bought Facebook stock at $27.
i'm interested to know your rationale for determining $27 in particular was a good purchase point? aside from "its a good company, its going up", and the usual retard blather?
if you're gonna crow about a stock purchase, support your reasoning.
It's always a guess to some extent.
My rationale was - it's the only product I can think of that literally every single person I know (or 95%) uses it daily. When I'm in a public place it's the most common thing I see on people's screens and phones. And as far as I can tell its a similar case across a majority of developed countries and developing countries.
At that point there was a lot of negative press about Facebook stock, so I bought when there was a lot of unsubstantiated negative sentiment around the stock.
I also got the feeling that Facebook management are looking at very long term, global strategy to dominate and not short term profits. The stock market tends to look at last quarter's results so I felt that it was undervalued.
Not really retard blather, it tends to work as a strategy.
For example another strategy that worked, when bad news hits, like when online gambling was outlawed in the US - the main online gambling companies stocks were hit with overly negative sentiment and tanked to very cheap when they still had a great business in the rest of the world.
Except what is the barrier to entry for future competitors? And what are their product differentiators? I feel like the over-evaluation of a lot of tech companies is because so many people tend to forget these basic tenets of business. I mean, it's one thing to build your userbase when you're flush with VC cash, but what happens when you need to start making a profit?
Was just reading that their last investor round was in July 2013 and valued the company at $1.5 billion. Sounds like investors (of which looks like it was almost entirely sequoia) only owned about 20% of the company.
If that's accurate, looks like the two founders could walk away with about $5 billion? That's absurd and awesome at the same time. Especially considering this was done in like 4 years and it's such a simple app.
Assuming they are worth 5 billion now, they are now one of the top about 250 richest people in the world.
If that's accurate, looks like the two founders could walk away with about $5 billion? That's absurd and awesome at the same time. Especially considering this was done in like 4 years and it's such a simple app.
Assuming they are worth 5 billion now, they are now one of the top about 250 richest people in the world.
