If you're looking at the equity of these companies, SBC is one of the biggest factors as to whether any of the value created by the operations accrue to the equity holders or is just being taken away as SBC. Good article overall missing an essential piece of the puzzle.. You can see that the share prices of companies with abusive SBCs have been flat or down despite operations growing and KPIs inflecting. Understanding this gives you a great edge for Long/Short Pairs trading :)
Not a word on stock-based compensation and the resulting dilutive impact?
It's a good point. The article cannot cover everything, but yeah it's true that it is a bigger factor in growth
If you're looking at the equity of these companies, SBC is one of the biggest factors as to whether any of the value created by the operations accrue to the equity holders or is just being taken away as SBC. Good article overall missing an essential piece of the puzzle.. You can see that the share prices of companies with abusive SBCs have been flat or down despite operations growing and KPIs inflecting. Understanding this gives you a great edge for Long/Short Pairs trading :)
Agree
Keep up the good work! All the best for 2025, may your wildest dreams be achieved :)
Same! Thanks, Happy New Year!