Seeking Alpha

WhatsApp roundup: Service restored after outage

  • WhatsApp went down for over three hours yesterday just days after it agreed to sell itself to Facebook (FB) for $19B.
  • The service has been restored and appears to be working fine.
  • Meanwhile, WhatsApp and other mobile-messaging services have cost phone carriers an estimated $32.5B in lost revenue from texting fees.
  • WhatsApp's messages are sent via the Internet and are free once the application has been downloaded and a data plan has been paid for, while traditional text messages are sent via the cellular network.
  • Separately, the WSJ profiles the role of former Google employee Neeraj Arora in WhatsApp's negotiations with Facebook. Arora is WhatsApp's one and only marketing manager, human-resources head, publicist, and business-development chief.
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Comments (13)
  • BAHAMAS1
    , contributor
    Comments (2857) | Send Message
     
    Wait for it... Here come the narrow minded, myopic FB haters through more of their made up "facts and figures" to now finding any reason to dump on WhatsApp, which most are not even familiar with.
    YAWN...
    23 Feb 2014, 10:56 AM Reply Like
  • Izeyll
    , contributor
    Comments (10) | Send Message
     
    What's more narrow minded than FB haters and their made up "facts and figures" is your dismissal of their arguments before they are even made.
    23 Feb 2014, 12:14 PM Reply Like
  • BAHAMAS1
    , contributor
    Comments (2857) | Send Message
     
    I , and many others have been subjected to them for the last few months right in line with FB's price ascension. Sour grapes ?
    I think so.

     

    Go back and read them and you will see the inadequacy of the "arguments" based more on trolling than anything else, least of all facts.
    23 Feb 2014, 12:22 PM Reply Like
  • IncomeYield
    , contributor
    Comments (2427) | Send Message
     
    Quick ...

     

    What is WhatsApp, what do they do, have you or anyone you know bought anything from them?
    23 Feb 2014, 12:53 PM Reply Like
  • Mark Krieger
    , contributor
    Comments (4474) | Send Message
     
    the guys at whatsapp were probably partying too hard in celebration of their windfall to watch the store.
    23 Feb 2014, 01:55 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (9719) | Send Message
     
    Facebook:

     

    Market Cap: $175 billion

     

    Shareholder's Equity: $15.5 billion

     

    Net Insider Buying (3mo): -7.3%

     

    Net Insider Buying (6mo): -20.3%

     

    Net Insider Buying (1yr): -34.8%

     

    To all long term "investors" of Facebook stock...say "hi" to March 2000 for me when you get there.
    23 Feb 2014, 05:22 PM Reply Like
  • BAHAMAS1
    , contributor
    Comments (2857) | Send Message
     
    deepvalue-
    Why should it bother you if others consider FB a long term investment ?

     

    It seems the only reason is for you to show your distaste for FB, which is your opinion.
    That's fine, but no need to be surly about others opinion that FB is a good investment.
    Quite frankly it's none of your damn business.
    23 Feb 2014, 05:28 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (9719) | Send Message
     
    BAHAMAS1:

     

    Where in my comment did I say I was "bothered"?

     

    I have no distaste for FB...my distaste is for the valuation.

     

    (Well, I guess I have distaste for Zuck's disregard of his customer's private information but that is another matter.)

     

    So, I am not surly...since I'm not long FB I don't have to be.

     

    If others are free to go online and boast of FB as an investment then I am free to go online and challenge that.

     

    I think FB "investors" feel that FB is another (GOOG).

     

    What they don't know is that Google produced FAR, FAR, FAR more profit than $1.5 billion when its market cap was $175 billion.

     

    That is the point...either FB will have to break a world record in profit growth to meet its valuation or its valuation will have to come down to a normal "growth tech stock" multiple to match its profitability.

     

    FB is expected to earn about $1 per share this year.

     

    Let's give that a high P/E of 40.

     

    That is a $40 stock. Give that a 20% premium and that is still a $48 stock.

     

    So, as you can see, FB is overvalued.

     

    If it gets cut in half from these lofty levels then I may take a look.

     

    But until then you'd be prudent to buy puts to protect your profits.
    23 Feb 2014, 05:56 PM Reply Like
  • TTWOholder
    , contributor
    Comments (21) | Send Message
     
    same could said to you.
    At the end, who gained from a stock is most important.
    It looks like you are a little bit scared at this time.
    23 Feb 2014, 08:52 PM Reply Like
  • Cliff Hilton
    , contributor
    Comments (2017) | Send Message
     
    I'm sure Facebook will fix the outage issue WhatsApp has. Because it does happen quite frequently. What they can't fix is the security issues, it's built in. Or maybe they can?
    23 Feb 2014, 05:57 PM Reply Like
  • mitrado
    , contributor
    Comments (2019) | Send Message
     
    It looks like FB will have to keep spending Billions every year, just to kill the competition.

     

    Lessons for Facebook: How WhatsApp went from red-hot to passé in Southeast Asia: http://tnw.co/1e9sHmw
    24 Feb 2014, 04:23 AM Reply Like
  • philipSA
    , contributor
    Comment (1) | Send Message
     
    My personal feeling is that FB didn't buy Whatsapp because it was a good investment. They bought it because they feared it. WhatsApp is effectively a condensed 'facebook' social network meesaging system and a game-changer that was growing fast at the expense of facebook subscribers. FB knew they had no option but to buy even just to stop Google from acquiring it. FB took the opportunity to leverage its current bloated shareprice whilst they could to buy. By buying WhatsApp they eliminated a very deadly competitor but at what price. This strategy is not sustainable and I think the market will come to realise it soon.
    24 Feb 2014, 06:18 AM Reply Like
  • mitrado
    , contributor
    Comments (2019) | Send Message
     
    And now they must buy Line: http://line.me/en
    24 Feb 2014, 10:27 AM Reply Like
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