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Facebook Stock Falls 5% in After-Hours Trading Following WhatsApp Announcement

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Re: Facebook Stock Falls 5% in After-Hours Trading Following WhatsApp Announcement

#3

Post by bckrasnow »

MG Siegler has been writing recently about the "great unbundling" of Facebook and how mobile apps are increasingly good at one thing only: Instagram at sharing Photos, Paper for reading the news, and now WhatsApp + Messenger for communication. It's becoming increasingly true as we see Facebook trying to buy the new dominant players in any space that could be a threat in the areas it holds dear: sharing photos, statuses, or anything else it deems important.

I would have to think that the stock drop is due to the price they're paying for a startup that had $8 million in funding.

Re: Facebook Stock Falls 5% in After-Hours Trading Following WhatsApp Announcement

#4

Post by notahacker »

bckrasnow wrote: post #3

MG Siegler has been writing recently about the "great unbundling" of Facebook and how mobile apps are increasingly good at one thing only: Instagram at sharing Photos, Paper for reading the news, and now WhatsApp + Messenger for communication. It's becoming increasingly true as we see Facebook trying to buy the new dominant players in any space that could be a threat in the areas it holds dear: sharing photos, status…

That and the way their announcement basically indicated they were happy to leave WhatsApp and its uber-smart and now-uber rich engineering team alone in its own $1/user/year ad-free bubble, on course to break even some time around the point mobile phones become obsolete. It didn't exactly scream we had to pay that much but we've really thought this through

Re: Facebook Stock Falls 5% in After-Hours Trading Following WhatsApp Announcement

#8

Post by neovi »

bckrasnow wrote: post #3

MG Siegler has been writing recently about the "great unbundling" of Facebook and how mobile apps are increasingly good at one thing only: Instagram at sharing Photos, Paper for reading the news, and now WhatsApp + Messenger for communication. It's becoming increasingly true as we see Facebook trying to buy the new dominant players in any space that could be a threat in the areas it holds dear: sharing photos, status…

There's that, and there's also the type of investors.

Since retail investors can trade after-hours, we can assume that the people responsible for the drop are either professionals or retail, which allows for irrational selling.

Also, the stock market is a market. So there could be institutional investors shorting bad plays from the individual investors and aggressively selling the stock (since after-hours doesn't have as many traders, it's a good bet to short until market opens tomorrow).

The only factors I personally see to determine Facebook's return on investment/share price are 1. $ per user, 2. potential user growth combining Facebook & WhatsApp, 3. time; which all seem pretty lackluster for the amount paid in the acquisition.

Re: Facebook Stock Falls 5% in After-Hours Trading Following WhatsApp Announcement

#9

Post by crazygringo »

ddrmaxgt37 wrote: post #6

Why do we care? Are we becoming Wall Street traders and "analysts"? What use is reporting or reading about stock movements within a day?

In case you're not actually trolling, here is why.

Because a change in market price reflects a change in the midpoint of opinion of people on the future value of Facebook, who are willing to put their money where their mouth is with regards to their opinion -- these are not the opinions of idle chatterboxes.

As such, stock price movement in response to news is a very valuable critique of a company's actions. A change in stock price is arguably more objective and valuable information than any random blogger or columnist whose opinion might be published here on HN.

Does that make it clear?

Re: Facebook Stock Falls 5% in After-Hours Trading Following WhatsApp Announcement

#10

Post by joe_the_user »

ulfw wrote: post #5

Only 5%??

As a heavy Facebook user, The weakening of the average users' engagement with Facebook is palpable at this point. Maybe the number of people with a "utility Facebook account", for when they really need it, is growing but the energy of the site is clearly shrinking.

The thing is that Facebook when it started was an ideal site for those who otherwise didn't "know" the net/online-world. But that naturally changed. People became more sophisticated in their consumption and more average people transformed trollish people. Together, this clearly reduces engagement to Facebook.

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