When Facebook Inc. (Nasdaq: FB) recently announced it was buying the messaging service WhatsApp for $19 billion, it touched off an avalanche of controversy and criticism.
We saw comments from the usual market pundits and stock jockeys. But with WhatsApp - thanks to the unique name, and the immense purchase price - even the late-night comedians stepped up.
Monday's broad-based rally sent the S&P 500 Index to an intraday record and also helped push Facebook Inc. (Nasdaq: FB) stock to an all-time high of $70.92.
Shares of the social networking giant climbed 3.4%, or 2.33 points, to the new high. Volume was heavy, with 76.63 million shares changing hands - compared to FB's average daily volume of 63 million shares.
Facebook is crazy for wanting to buy messaging company WhatsApp for $19 billion - crazy like a fox. But most in the media have completely missed the key to why this deal is so smart.
This is how Facebook plans to become the king of mobile...
