39% growth in market cap. 6% growth in share price.
Be mindful of companies that have to burn shareholder value to grow, make sure stock compensation is priced into your assessment. To help with this, instead of looking at revenue and net income and fcf in absolutes, look at these metrics PER SHARE.
That helps you keep in mind trailing stock dilution. As well as, look at the cash flow statement. You will see their net equity issued/repurchased.
Hope this is helpful as you try to assess value in beaten down tech that uses lots of equity promises to lure top talent. Everything has a cost and some companies may be using your money to grow at the expense of your short term horizon's principal. Ideally long term value makes up for that, but that isn't always a sure thing.
Leave a Reply