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10% doesn't make up for the fact that GOOG stock already peaked way back in 2007, which means any Google stock options granted at today's prices are worthless t
by dstein 16y ago
10% doesn't make up for the fact that GOOG stock already peaked way back in 2007, which means any Google stock options granted at today's prices are worthless to new employees.
Google is essentially powerless to compete with Facebook's stock option potential value.
- ajays 16y agoI've heard that Google gives RSUs (Restricted Stock Units) and not many options. RSUs basically are stock grants which vest over time. Of course, you don't get as many RSUs as options. But there's no question of RSUs going underwater (unless the company folds).
- GavinB 16y agoA couple of issues with this: 1) Past peaks aren't relevant to the value of options granted at today's prices. The question is whether GOOG will be higher or lower next year. 2) Options and equity that Facebook gives its employees aren't free. They have a market value, which Facebook is giving in return for an employee's efforts. The real issue is that Google has more than 10x as many employees as Facebook, and its value is likely to be more volatile, which is good for risk-seeking employees. Edit: Both Google has about 10x the Market Cap and 10x the employees, so they're at least in the same order of magnitude in terms of how much equity can be given away in each.
- dstein 16y ago* The question is whether GOOG will be higher or lower next year. GOOG stock right now is making a triple top under the 2007 peak. It's done for. I dare you to go long. I double dare you to buy a call. The bottom line is I would take any Facebook option at today's prices, over any Google option, period.
- neworbit 16y agolulz at people who buy technical indicators over stock fundamentals
- dstein 16y agoInvesting based purely on fundamentals works for value stocks held for very long periods of time. I would not consider GOOG a value stock, nor a good long term investment -- which was the point I was trying to make. On both the short, and long term Google stock isn't looking great, which makes options at today's prices unlikely to be worth much, if anything.
- guelo 16y agoThis logic seems dumb, Facebook is a big company, if you're joining Facebook now, even as a star hire, are they really going to throw enough equity at you to make you a millionaire in some unknown future IPO? And you have no idea when the IPO will happen, it could be 10 years before you can liquidate. And you might get screwed over on some dilution or the strike price or something currently undisclosed, private companies are notoriously secretive about their financials. It's just too many unknowns. I don't think it makes sense to plan your life around hitting this options jackpot.
- dstein 16y agoIt's the difference between your stock options being worth $0 (in the case of Google), and they being potentially worth 10X (in the case of Facebook). I'd say 10X is a pretty big difference.
- guelo 16y ago$0? GOOG is at $624, I'm sure there are a lot of googlers sitting on options with $300-500 prices.
- jamesaguilar 16y agoConsidering the repricing [1] that occurred earlier this year, yes. [1] http://googleblog.blogspot.com/2009/01/announcing-googles-employee-option.html http://googleblog.blogspot.com/2009/01/announcing-googles-em...
- adambyrtek 16y agoThis is from Jan 2009, not this year, and I'm sure you're aware of the fact that the downfall affected the whole economy, not Google in particular.
- jamesaguilar 16y agoOops. Memories fade. At any rate, my point is that a lot of people have options with a low strike price. I'm not sure what the downfall of the economy has to do with this fact.
- othermaciej 16y agoI would bet Google gives mostly restricted stock, not options. So not worthless, but not as much potential upside.