Re:Ask HN: FAANG employees, how are the recent stock decline...
by dunpeal on Tuesday October 30, 2018 @01:14PM
(#18338942)
Sure, I totally agree with that.
My comment was just to the effect that GP's comment implies that belief, i.e. that their employer's current stock price is undervalued (like how AMZN is currently trading for $1.5k but is actually worth $2k).
Had they believed the stock is currently fairly priced, there's no reason to call these RSUs "cheap" or expect much excess return on them at vesting.
Worst case scenario: if they're still overvalued, then further declines can be expected, and any grant denominated by RSUs is actually worth less than its nominal cash value.
My comment was just to the effect that GP's comment implies that belief, i.e. that their employer's current stock price is undervalued (like how AMZN is currently trading for $1.5k but is actually worth $2k).
Had they believed the stock is currently fairly priced, there's no reason to call these RSUs "cheap" or expect much excess return on them at vesting.
Worst case scenario: if they're still overvalued, then further declines can be expected, and any grant denominated by RSUs is actually worth less than its nominal cash value.