211–220 of 235 posts
It will be very interesting to see what happens when all these antitrust cases against Google, Apple and the likes are over. If the verdict will be that developers can use any payment processor, Stripe is in for a huge market.
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Could you clarify? By any measure we're already in a recession today. I'm certainly no economist so maybe there is some other detail we're missing?
Recessions are a lagging indicator. You won’t know until a year after it starts. What we are seeing right now is nothing compared to 2008. This is a slowdown, not yet, a recession.
7 months in the US to be precise (if a recession started Jan 1, 2022, we find out on Jul 28, 2022).
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I'm genuinely curious why you say this. Could you please elaborate? I've only worked at publicly traded companies. I don't understand how this wouldn't be the exact situation you'd want to be in. my understanding is this: 1. If you're granted options at price X, and the new share price is lower than X, you're under no obligation to exercise your options. So no real financial loss or cost to you. 2. If you're granted…
It's designed to screw employees out of upside and they sell it pretending it's employee favorable. If you reprice equity comp each year then you lose most of the upside. Compare the two following equity plans: Example Year 1: --- PLAN 1 FMV: $1 Strike: $1 Total #: 40k ISOs Vesting: 4yrs --- PLAN 2 FMV: $1 Strike: $1 Total #: 10k ISOs Vesting: 1yr --- In the second plan you get granted new equity per year targeting s…
If you're given a 4 year grant for $X and during the first year, stock/options/whatever equity form drops 25%, then you now need to wait for the company to grow 33% to get back to your original target comp.
If that same situation happens except the drop happens in year 4 of a grant and you're above your target equity, then you'll be ahead only if the company has grown more than 33% since your initial grant date.
Now let's say you're granted an amount annually. And it drops 25% your first year and you plan to stay 4 years. Your equity portion of pay goes down for 1 year and then it goes back up. Now on year 2 you're given 1.33x the number of shares you were year 1. So let's say the company goes back up by year 4 to the original price and it steadily climbed back. If you sell at time of vesting, year 1 you took a 25% loss, year 2 you made some sort of gain. Year 3 you also made some sort of gain.
Let's say you held all vested stock and decided to sell at the end of year 4. Well your 1st year is flat but it's a loss due to opportunity cost and inflation. Year 2 has gone up 33%. Year 3 has gone up some amount as well. Year 4 probably has as well (assuming equity is priced at the beginning of the year).
I'd have to run real numbers to understand this, but again, I think people under estimate the affect a drop has. 4 year grants up front are just more risky and more of a gamble since you've basically bought 4 years worth of stock at a single price (e.g. you're timing the market).
Should be cut by 50%+ to be in line with the rest of the tech market, and even more if you are valuing it as a FinTech company. SQ is down 75% since its November peak.
Having no knowledge of their financials between then and now, we either expect that the valuation is done wrong, or that really, their growth and fees last year are really that much better than Square's and PayPal, in relative terms. For someone that has access to all the numbers, like whichever accountants they brought in to do this FMV calculation, it's not as if comparing the companies would be that difficult. So…
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That’s a good question. People in tech all know Stripe, but outside this circle, PayPal and even Square have far superior brand recognition. If you ask my family members what Stripe is, they would shrug.
I suppose you're technically correct (the best kind of correct ;) but I am not so sure that the brand-recognition metric is the best one to apply to Stripe. PayPal and Square both have a strong B2C presence. PayPal has B2C offerings focused around sending/receiving money. Square, while they don't have a strong B2C product, does spend a lot of time sticking their logo in your face every time you go to a merchant that…
Huh? Block (formerly Square) has an incredibly strong B2C product (the #1 finance app on the iOS App Store and Google Play Store in the US) called Cash App (formerly Square Cash).
What’s the difference between internal and external valuation?
Stripe is pre-IPO so any valuation is internal given there's no public market to set a value for it. It would matter in case they try to raise capital again in the future. By lowering the valuation they make the company cheaper to invest.
What’s the difference between internal and external valuation?
Actually 28% is nothing. Most Fintech stocks are down ~75%, this company is still wildly overvalued
Stripe did $12B in revenue last year. If the valuation of $95B dropped 28%, that is $68B. That seems like a fair, if not quite low valuation of a fast growing SaaS fintech company with an excellent product.
Block (Square) did over $17.6B revenue last year, an 85.95% increase from 2020. Their current market cap is below $40b and their stock is down around 70% from when Stripe raised their last round of funding.
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I suppose you're technically correct (the best kind of correct ;) but I am not so sure that the brand-recognition metric is the best one to apply to Stripe. PayPal and Square both have a strong B2C presence. PayPal has B2C offerings focused around sending/receiving money. Square, while they don't have a strong B2C product, does spend a lot of time sticking their logo in your face every time you go to a merchant that…
> Square, while they don't have a strong B2C product Huh? Block (formerly Square) has an incredibly strong B2C product (the #1 finance app on the iOS App Store and Google Play Store in the US) called Cash App (formerly Square Cash).
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I suppose you're technically correct (the best kind of correct ;) but I am not so sure that the brand-recognition metric is the best one to apply to Stripe. PayPal and Square both have a strong B2C presence. PayPal has B2C offerings focused around sending/receiving money. Square, while they don't have a strong B2C product, does spend a lot of time sticking their logo in your face every time you go to a merchant that…
I would define Stripe as B2B2C. It’s not simply a B2B because they help business charge customers. Their value is convincing business to use their platform. Most businesses will choose payment gateways that their customers use. And by far the number 1 request from customers is usually PayPal. They might be invisible to the customer, but business will alway prefer to integrate with payment gateways that will get custo…
I agree; this is more accurate.
> And by far the number 1 request from customers is usually PayPal.
Do you have any data on this? I'm genuinely curious. Not only do I have a long list of negative experiences with PayPal that skew my own take, but I also have no idea where to look for this kind of industry-wide data on B2B2C customer-demand.