SBC is the most abused aspect of corporate finance in the US. The regulators are also asleep at the wheel. Shareholders ought to hold management to account, but most of the market is now passive, so there is no challenge. That's why they get away with it. Worse, SBC artificially inflates share prices and dislocates them from economic reality. Markets have been broken by the combination of these things. Regulators - wake up!
Man... but we need a high SBC... otherwise, how will management pay for their second vacation home? Or rent private planes? Or send money to their secret children?
jep, that is about it in this case ... in other cases SBC is good and the business scales and starts to properly deliver ... in some cases, just a milking the cow mechanism ...
Snap is a good example that a great company doesn't have to be good for shareholders as well. SBC can be one of those reasons. Would love your thoughts on Palantir and SBC 102 Maverick...
Valuation wise though, different story: quite overvalued currently ... maybe I will post about it soon in terms of a special situation to hedge/lock in the gains.
SBC is the most abused aspect of corporate finance in the US. The regulators are also asleep at the wheel. Shareholders ought to hold management to account, but most of the market is now passive, so there is no challenge. That's why they get away with it. Worse, SBC artificially inflates share prices and dislocates them from economic reality. Markets have been broken by the combination of these things. Regulators - wake up!
Thank you James for the feedback, great take!
SBC quite a key topic that needs more awareness!
Have a great day!
Man... but we need a high SBC... otherwise, how will management pay for their second vacation home? Or rent private planes? Or send money to their secret children?
jep, that is about it in this case ... in other cases SBC is good and the business scales and starts to properly deliver ... in some cases, just a milking the cow mechanism ...
Great stuff. I knew sbc was bad but not this bad. Enriching themselves
Glad to hear Gerry!
SBC can be good in general, but in this case bad indeed.
Cheers!
Its a joke. Top Analysis. Thanks a lot.
A joke, well said Adrian!
Glad to hear, welcome!
Cheers!
Snap is a good example that a great company doesn't have to be good for shareholders as well. SBC can be one of those reasons. Would love your thoughts on Palantir and SBC 102 Maverick...
Indeed, well said! Palantir is different SBC wise: SBC is good, it works, the business scales & good profits delivered lately: https://x.com/Maverick_Equity/status/1920877911038423334.
Valuation wise though, different story: quite overvalued currently ... maybe I will post about it soon in terms of a special situation to hedge/lock in the gains.
Me gusta mucho este tipo de información sobre empresas, me ayudan a aprender muchas cosas que desconozco. Gracias.
Welcome Cris, glad to hear, way more incoming! Hola!