Facebook Chart

FB (Stockcharts.com)

Facebook sees an opportunity to integrate a company called Whatsapp into its array of offerings so it decided to pay as much as a whopping $19 billion for a company that loses money. An excerpt from the CNN Money article:

"Zuckerberg said he doesn't anticipate trying to aggressively grow WhatsApp's revenue until the service reaches "billions" of users." http://money.cnn.com/2014/02/19/technology/social/facebook-whatsapp/

Pie in the sky, and a very tasty pie for Whatsapp insiders I might add. Did Facebook overpay? Who knows. What is money worth anyway? We are in a state of suspended animation in the tech/social media sector, so valuations cannot really be analyzed with hard numbers and growth forecasts.

The Facebook/TSLA/PCLN price action today is a clear indication that sentiment is quite bullish indeed, and the animal spirits are very much alive and kicking in this market.

New all-time SPX highs on Friday? Sure, why not?

Related:

Musings on Markets: Facebook buys Whatsapp for $19 billion