Thursday, February 20, 2014

Facebook's purchase of Whatsapp...

A couple of divergent opinions on the latest shopping spree from Facebook.

Felix Salmon:
Zuckerberg will dominate the mobile market at any cost because he has almost bottomless pockets.

Kid Dynamite:
This looks like an April Fool's day deal.  FB has paid through the nose for people who by definition use Whatsapp because it is basically free.  It's Groupon all over.

I've given up trying to figure out whether what FB does makes any sense.  I note that as of today, the price of FB is trading close to $70.   My earlier prognostications about the stock being overvalued at IPO were wrong.   This is why I index - I am a useless stock picker, but to my credit, I know this.