For years, the lavish stock grants and options handed out by tech companies went largely ignored by investors. Now, the practice is finally getting attention, and it’s likely going to bring bad news for software investors.
As growth rates have tumbled and scrutiny has increased, the high levels of equity-based compensation are now a structural problem for the tech industry. The coming dilution of shareholder ownership from stock-based compensation is a recipe for underperformance, says SVB MoffettNathanson analyst Jackson Ader who has studied share issuance across the software industry.
Source: finance.yahoo.com
Related posts:
Stocks Hover as Traders Brace for September Swings: Markets Wrap
IBM’s CEO says its new A.I. tools will be able to do ’30 – 50%’ of ‘repetitive’ office work after in...
Nvidia’s CEO just gave a graduation speech about the future of work and said that A.I. won’t steal j...
3 No-Brainer Stocks to Buy if Donald Trump and Republicans Sweep in November
Apple stock faces major test that could turn ‘quite bearish,’ analyst says