Its not really 100B, not remotely. The telcos have already started moving to free txt.
The ones that get hurt here are the international tiny telcos that charge 50 cents a text. They deserve to be destroyed.
But for FB to buy a 17B idea that they could easily duplicate and totally destroy with 1/10th the money.
They could offer a dollar to every downloader and user for 1B dollars and simply TAKE all the Whats App customers.
FB failed miserably here and will NEVER LIVE THIS DOWN. Biggest overpay in history.
Tesla Motors Inc.(TSLA) reported late Wednesday a fourth-quarter net loss of $16.3 million, or 12 cents a share
Just because of one time adjustments and zero emission credits and other variables, they claim they actually turned a profit. When you look long and hard at it, they MISSED sales numbers and are still technically operating at a loss.
And this is with near perfect execution. Wait till the battery shortages, cost increases, and the halo of first adopters dies out.
Then BMW which operates at 6% margins marches in an offers its version.
Competition always kills the first movers.
This is still just a car, and it has limited range. Someone will make a better or copy this mousetrap soon. Margins will compress.
This stock WILL GO LOWER. Any chance on a bump like this to take profits, DO IT!
Remember. TSLA lost $4 a share in earnings in the first 3 years. Even if it makes money for the next 3 years, 30 cents a quarter, it will be 3 years till it really breaks even.
So even 3 years from now, this company will be, as a whole, unprofitable.
It was when the stock was $30 a share NOT $200.
Apple wouldn't touch this absurd overblown stock with a 20 yard stick.
This stock is in HYPER overblown mode. They have to execute PERFECTLY every single quarter not to blow off this top and plunge.
The plunge is guaranteed. Its just a question of when.
Even good numbers will cause the stock to burn off 10%. It needs PERFECT numbers to stay up over 200.
All the options trading will draw Google to 1210 for the close. Place your bets accordingly.
Icahn is horrible, yet if Apple does as he suggests, the share value will rise. The reduced number of shares will inherently raise the EPS on the stock. So the value to the investor and market as a whole is real. Even if he is the greedy one, it helps us all.
No matter what happens, they are gonna post a record quarter, have cracked into Chinese market, are gonna offer an Iphone XL with similar screen sizes to Samsung phones, and are going to do a gigantic buyback.
Add in Icahn cheerleeding and gobbling shares and the stock has a solid floor at 550. It will either rocket up AH or it will slowly rise for the next few weeks.
Smart sellers will dump at these obscene highs. The stock is still at a PE of 125 and very large expenses are looming ahead.
Short sellers will cover and have margin calls today, the stock has another big leg up here, back to over 180.
Then the shorts can play earnings. But as it stands this is a freight train. It will run and run.
So much momentum, insane upside move. Shorts are gonna cover and then double down at 180.
Meanwhile its melting up. Not a great idea to stand in its way.
All the loose money that pumps up empty stocks like Facebook, Tesla, Twitter. That money is now gonna plow into Apple because this China deal is such a game changer. Its as if they have doubled their market overnight. I expect another 30 points in by Friday.
And as it stands, as it does so, it loses money.
Furthermore as it expands and its costs go up, its margins will compress and it will continue to LOSE money.
Its possible that the company will not turn a profit for at least another full year. In that period Apple will make 50B.
Too much bad news.