Re:Meta Earning Results Q3 2022 [pdf]
by mathattack on Thursday October 27, 2022 @07:11AM
(#33355887)
The dilution will be much higher if the share price stays lower.
Think about it this way:
Giving 20 billion in new equity per year when the market cap is a trillion dilutes everyone 2%. When the market cap is 500 billion you are now diluting everyone 4%.
When the company is growing you don’t see the dilution as the increase in stock price is much higher. When it’s static this drags your shares down over time.
Think about it this way: Giving 20 billion in new equity per year when the market cap is a trillion dilutes everyone 2%. When the market cap is 500 billion you are now diluting everyone 4%.
When the company is growing you don’t see the dilution as the increase in stock price is much higher. When it’s static this drags your shares down over time.