141–147 of 147 posts
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A direct listing would be very unfair to the banks that have patiently waited years to take a multi-billion-dollar chunk of Stripe’s upside in exchange for setting the IPO price (integer between 20 and 50).
Those 3rd homes in Miami aren’t going to buy themselves.
They will if they come with a chatGPT4 assistant as standard.
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Those offerings are only for options holders. RSUs cannot be traded; otherwise, every RSU holder has to pay taxes.
As someone who only has dealt with public companies, how is that different from my having to pay taxes when my RSUs vest?
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It's because the earliest RSUs they issued are expiring this year: https://www.theinformation.com/articles/stripes-early-stock-...
They’re options that are set to expire, not RSUs. Yes, the employees could exercise them to prevent them from expiring, but then Uncle Sam comes to collect his dues. And that’s where illiquidity burns you.
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As someone who only has dealt with public companies, how is that different from my having to pay taxes when my RSUs vest?
At Stripe, when your RSU vest, you still don't have the ability to buy the shares. Instead you have to wait for a liquidity event, or for 7 years to pass (making the shares worthless).
I get to choose whether I want them to sell enough to cover taxes or whether I want to cover taxes some other way,
So you get absolutely nothing liquid when you get your RSUs at Stripe? What’s the point and how is that different from getting stock options?
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Intrinsic value involves discounting future cash flows. With rates up that should punish Stripe similar to the rest of the market.
I see the term "intrinsic value" frequently used incorrectly. Mostly, it is used in finance to describe the value of an option when "in the money" (underlying is above/below strike price for call/put). Perhaps they means book value, which the value of the company if all assets and liabilities were sold at market prices. For most pure services companies, it is very low (perhaps negative due to liabilities), as the acc…
https://www.valueresearchonline.com/stories/23354/intrinsic-...
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At Stripe, when your RSU vest, you still don't have the ability to buy the shares. Instead you have to wait for a liquidity event, or for 7 years to pass (making the shares worthless).
With RSUs, stock is deposited in my brokerage account that I can sell anytime I want. I get to choose whether I want them to sell enough to cover taxes or whether I want to cover taxes some other way, So you get absolutely nothing liquid when you get your RSUs at Stripe? What’s the point and how is that different from getting stock options?
(Disclaimer: I am a holder of Stripe RSUs)
Earlier quoted context omitted.
Intrinsic value involves discounting future cash flows. With rates up that should punish Stripe similar to the rest of the market.
I see the term "intrinsic value" frequently used incorrectly. Mostly, it is used in finance to describe the value of an option when "in the money" (underlying is above/below strike price for call/put). Perhaps they means book value, which the value of the company if all assets and liabilities were sold at market prices. For most pure services companies, it is very low (perhaps negative due to liabilities), as the acc…
It leaves out things like “what might the IP be worth to someone else?” and “What could the company do with better management?”
To your point, it’s frequently less than what the company trades at. Sometimes the opposite is true, and the company trades for less than the cash value of its assets minus liabilities.