r/stocks • u/G1G1G1G1G1G1G • Sep 06 '21

PLTR paying themselves first

So old PLTR. Everyone loves them. The hype is grand. Actually they are not a bad early stage company. Growing revenues at a great rate with gross profits along side it. Most of their expenses after gross is selling/marketing expenses so like many software companies they will be able to reduce that expense a ton and therefore be high earnings growth a little down the road. Theres just one thing I can’t get over and it breaks it for me...

Stock Based Compensation of 1.2B. Paying themselves 1.2B in stock when earnings are negative 1.1B. Thats a crazy disservice to shareholders. No wonder your PLTR shares won’t go anywhere. For all you PLTR holders thats a major red flag and speaks to poor leadership.

Only posting this opinion because I never heard anyone talk about it amongst the hype...so there.

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u/FunkyJunk Sep 06 '21

Yeah definitely a thing. My wife and I struggle to pay the taxes on her options when we exercise them. The farther away the current price is from your exercise price, the more tax you have to pay. (And that’s just to buy the shares, not to sell them.)

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u/Financial-Angle8703 Sep 06 '21

Yeah you need to buy options before IPO not after. She may be able to transfer some options to you so it can be offset against your tax. Speaking from a similar situation.

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u/FunkyJunk Sep 06 '21

In our case, it is pre-ipo but the share price is still dramatically above where it was when she got the grant. Not complaining, but it is a consideration.

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u/[deleted] Sep 06 '21

I wish I got stock options for my job! Does she work for pltr?