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October 21, 2012 – Comments (1) | RELATED TICKERS: GOOGL

I was just having a look at the earnings news with Google and share dilution is a huge issue for me.  Anyway, for google for the end of September last year it says 327.4 million and for this year 333.3 and that is a 1.8% dilution in a year, or in rough numbers, 6 million shares at say $650, roughly $4 billion...

Ok, so I have zero idea as to why the share increase, and what a lot of work to keep up on the "why" of these things that look bad.

So, then I went and looked at the net income of the 4 quarters and $10.6 billion, so a share dilution that is in the range of 1/3rd of the annual net income...  Wow...

And from what I can see from just this quick look, whatever that share increase was for, it has not resulted in increased revenue... 

 

1 Comments – Post Your Own

#1) On October 22, 2012 at 3:56 PM, ikkyu2 (99.39) wrote:

They compensate employees in options.  Google has a ton of really high caliber employees - software engineers they had to lure away from lucrative jobs elsewhere, mainly - that they hired in a binge in the late 2000's.  Most of them contribute nothing to bottom line, either, and a lot of folks have been waiting for Eric or, now, Larry, to purge them.

We're still waiting.  Meanwhile they keep harvesting the options they were promised when they came on board. 

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