Re:Facebook investors look for exits
by prostoalex on Wednesday April 27, 2011 @07:29PM
(#2491519)
Why do people get excited about profits of a company that never pays dividends? Is it about preservation of capital? Or a hope to see a trickle down effect of dividend payments at some point?
[ Parent
| on HN ]
The retained profits (much of which go to productive activities such as R&D) add to the value of the company. Theoretically, the market should see this and then revalue shares accordingly.