People are making a big deal out of nothing here. The bad publicity around the acquisition (if anything) caused the share price to drop, not investors misguided confidence in virtual reality tech. Lets not confuse the two. If people were applauding the acquisition, we would be reading an article on how the share price jumped 7%.
Fluctuations happen in the market every day tech stocks are particular delicate because it can be harder to predict what is going to happen. If you look around, you'll notice Amazon dropped 3%, Twitter also dropped 7% (amongst a few others also down).
We don't know for sure that the acquisition of Oculus even caused the drop. Although, looking back on previous FB acquisitions you see a drop of investor confidence as witnessed with the Whatsapp acquisition.
When Facebook announced the $19 billion purchase of Whatsapp their share price tumbled 4.8%, once again this was a short-lived drop once the fanfare died down. Facebook know what they are doing. The fact Sony are moving into the VR space and apparently Valve are also going to be getting in on it signals this isn't a fad, this is a new-found technology arms race.
He who has the most money wins and at the moment, Facebook have a bit of money and a good network of investors behind them to propel Oculus to the top of the VR market and inevitably beat competitors on not only features but the all important price factor.
Edit: I've been down-voted. I respect that, but if you're going to down-vote my argument at least have the audacity to counteract it in the form of a reply.
I think it is unfair that you have been down voted, but I think the reason is your statement that Facebook's management knows what they are doing. I don't know if they do, but the evidence so far at least looks questionable.
Fluctuations happen in the market every day tech stocks are particular delicate because it can be harder to predict what is going to happen. If you look around, you'll notice Amazon dropped 3%, Twitter also dropped 7% (amongst a few others also down).
We don't know for sure that the acquisition of Oculus even caused the drop. Although, looking back on previous FB acquisitions you see a drop of investor confidence as witnessed with the Whatsapp acquisition.
When Facebook announced the $19 billion purchase of Whatsapp their share price tumbled 4.8%, once again this was a short-lived drop once the fanfare died down. Facebook know what they are doing. The fact Sony are moving into the VR space and apparently Valve are also going to be getting in on it signals this isn't a fad, this is a new-found technology arms race.
He who has the most money wins and at the moment, Facebook have a bit of money and a good network of investors behind them to propel Oculus to the top of the VR market and inevitably beat competitors on not only features but the all important price factor.
Edit: I've been down-voted. I respect that, but if you're going to down-vote my argument at least have the audacity to counteract it in the form of a reply.