News for hackers. Stuff that matters.
Re:Fidelity cuts Reddit valuation by 41% by bagacrap on Saturday June 03, 2023 @08:30PM (#36181864)
We're talking about Reddit, not Apple. Apple has enough cash flow to fund most investments and enough stability to get a decent rate on the bonds it issues. They do not need to sell more shares for capital, although they do create shares for RSUs. Using RSUs (which are later bought back) as a part of compensation is a kind of revolving line of credit, which conveniently scales with the success of the business. That is, when the business is going through tough times and stock price falls, the stock based compensation expenses also fall.

There are no comments on this comment yet.