#Bubbletime More interesting than the details of the deal itself is what it says about the state of the markets. Social media and some other tech stocks may not be in a bubble but with a market cap of about $175 billion Facebook is now valued more dearly than Disney. Or McDonald’s. Or Amazon. Or Coca Cola. Or Visa. Or Hewlett Packard and Starbucks combined. Or Nike and American Express combined. Draw your own conclusions and call it what you want. And when you have a stock that is valued so highly by the market it probably makes sense to exchange it for something – apparently anything – before the market takes back what it has so generously conferred. QE may not have devalued the dollar but if it takes $19 billion worth of Facebook shares to buy $20 million in revenue and a lot of hope/hype, then it has surely devalued something. Quite possibly common sense. alhambrapartners/2014/02/23/a-little-dot-com-deja-vu/
Posted on: Mon, 24 Feb 2014 15:23:39 +0000
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