Monday Morning's Movers: LGF, MSFT, SRE >>> READ MORE

3 Signs Facebook’s Mark Zuckerberg is Crazy

WhatsApp is either an albatross or a home run, and my vote is the former

    View All  

All Good Bubbles Come to An End

Some of the more ludicrous analysis on the WhatsApp deal goes something like this: Well, Facebook paid X for Instagram and based on the $19 billion paid for WhatsApp, that looks like a great deal right now.

Of course it does. That’s like saying I paid $100 for that old jalopy and $1,000 for the newer jalopy so now it looks like I got that old jalopy for a steal. Well it’s still a jalopy! Give me a break.

The message that the WhatsApp deal delivers definitively that we have a new dot-com bubble. I think Zuckerberg knows it too. Facebook said that it would be taking a pause from deal-making after this WhatsApp buy.

It’s almost as if Zuckerberg woke up from the binge with a massive hangover. He has no interest in drinking anymore. He knows what he did was a big uh-oh. Zuck’s best hope is to digest the meal and hope to god the bubble doesn’t burst on his watch.

I wouldn’t bet on it. The risks are too huge and I’m not even sure what the reward would be.

Written by Jamie Dlugosch

Article printed from InvestorPlace Media,

©2017 InvestorPlace Media, LLC