3 Signs Facebook’s Mark Zuckerberg is Crazy

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

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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, http://investorplace.com/2014/03/facebook-mark-zuckerberg-amzn/.

©2015 InvestorPlace Media, LLC

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