I agree on the "spend wisely" part, but not the "reduce their taxes" part. If they reduce their taxes, it means that they will have less income (and cash flow). It will be income and cash flow that drives valuation IMO. I will gladly have them pay the taxes and make the income.
I have said for awhile that the hiring will affect earnings. Others (DD) have pointed to management's statements about net costs for '11, I think management will change their statements as the year progresses if cash from mLov continues to increase and the company continues to feel comfortable hiring people for future growth. I have no problem with the hiring since it will grow the company eventually, but there is a cost associated with it. JMO.