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

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41–48 of 48 posts

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

#41

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…

>willing to put their money where their mouth is

Surely not THEIR money. Someone else's money, with a fee for "expenses"

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

#42
post #18

There must have been other bidders – such as Google, Apple, Microsoft – who saw WhatsApp as an end-around Facebook's social dominance. So imagine one of those other bidders had won, at a lesser price. Facebook might still have taken a 5% hit, facing a newly-empowered competitor. At least now, as with Instagram, the threat has been absorbed into the mothership. It's a rich price, but arguably strategically justified.…

Thank you. This is the justification I was looking for. It felt like this acquisition was driven by a fundamentally different motivation than the Instagram acquisition and the Snapchat offer, but I couldn't put my finger on it: Facebook wasn't paying $40/user, they weren't paying $0.5B/engineer, and (unlike Instagram or Snapchat) they were not scared of WhatsApp as a competitor (at least not in terms of mindshare, be…

[deleted]

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

#44
post #25

Earlier quoted context omitted.

Hangouts is also a messaging app that is meant to replace texts.

True, but the only thing I've ever heard it praised for is how well it handles multi-person video chats. I've never heard of anyone using it for purely text chats. Maybe that will change, but it's not an SMS replacer yet at any level.

Neither is What's App

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

#45
post #37

After-hours price changes are pretty much meaningless. After many years of seeing dramatic after-hours changes contradicted when the market opens, I've concluded that generally you should just ignore what happens after hours.

this is a totally expected shift in prices. large acquisitions almost always cause the stock of the acquirer to drop.

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

#46

How the HELL did Everpix die? No, seriously. Everpix DOMINATED WhatsApp on every possible metric: social networks/sharing, user commitment, revenue, advertising information, and long-term potential. Anyone can (and will) switch instant messenger networks on a whim. There's literally no barrier to keep me from telling friends to contact me on Hangouts from now on. A photo site tells you where people go, what they do,…

No, seriously. Everpix DOMINATED WhatsApp on every possible metric: ... revenue

WhatsApp has a few hundred million people paying $1/year

Everpix had 250k in revenue, total over the company's entire existence.

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

#47
post #25

Earlier quoted context omitted.

Hangouts is also a messaging app that is meant to replace texts.

True, but the only thing I've ever heard it praised for is how well it handles multi-person video chats. I've never heard of anyone using it for purely text chats. Maybe that will change, but it's not an SMS replacer yet at any level.

Of course people use hangouts for purely text chat -- it's Google Talk!

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

#48
post #47

Earlier quoted context omitted.

True, but the only thing I've ever heard it praised for is how well it handles multi-person video chats. I've never heard of anyone using it for purely text chats. Maybe that will change, but it's not an SMS replacer yet at any level.

Of course people use hangouts for purely text chat -- it's Google Talk!

Yep, my company uses Google Talk for IM, so as a result most of us use the Hangouts app if we want to chat on mobile.
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