Yesterday started with the news that Microsoft was buying 800 patents from AOL in a $1 billion blockbuster deal. The news sent long-beleaguered AOL shares soaring 45% and has the tech world atwitter over Microsoft’s plans.
But before the afternoon was over, Facebook grabbed the spotlight announcing a billion dollar deal of its own. In its biggest acquisition ever, Facebook is buying red-hot photo sharing service Instagram for a cool $1 billion in cash and stock options. Instagram is one of the hottest apps out there, attracting an amazing 30 million users since it launched in January 2011.
With this deal, Facebook gobbled up a potential competitor, gave Wall Street another reason to hype its upcoming IPO, and gave users one more reason to spend time on Facebook all in one fell swoop.
In a striking contrast, all this was happening while the market spent the day in the red, ending down 1%.
So, on a day that the knee-jerk, short-term, hype machine that is called the financial press was in overdrive turning a weak jobs report into a sky-is-falling crisis that would make Chicken Little blush, two of the biggest companies on the planet were on a spending spree.
Tell me, is this how companies behave when they are worried the economic recovery is about to falter? When they think the stock market is about to collapse?
No, this is how smart companies behave when they smell opportunity.
This is how GameChangers sharpen their competitive edge, devour more market share and fuel their next round of monster growth.
Apple, Priceline.com, Amazon.com, Cognizant Technology, Intuitive Surgical…these GameChangers defied the Great Recession. They soared despite a terrible market. They came out bigger, stronger and made their investors a fortune.
And they did it through innovation, an unrelenting focus on growth and an aggressive pursuit of opportunities.They did it by playing long ball.
They didn’t get derailed by the crisis du jour.
And if you are invested in the right stocks, you shouldn’t either.
Don’t let one weak jobs report, or a short-term correction or whatever may be happening this instant in the market derail your long-term goals or investing strategy.
It’s a recipe for failure.
Instead, tune out the noise and take advantage of the opportunities this market pullback is giving you to load up on the GameChanging companies that are placing bets right now that will pay big dividends six or twelve or eighteen months from now.