So this economist is saying that a deal is only good if it raises the subjective share price? That is some distorted world view of finance that aims to just repeat the ai bubble narrative that is popular these days
How is that “distorted”? The classic evaluation of a stock is (yeah I’m simplifying) is the present value of all future returns. If a deal doesn’t increase expectations of future returns, it would seem to be the market showing its lack of confidence in the deal
It shows the market's lack of confidence but this is subjective. You can never say if the deal is underwater until the deal is completed and results are shown! The article says exactly this!
