While you make a really solid point about simultaneously issuing equity and buying back to minimize dilution, you assume stakeholders (public or private investors) understand this as well. For some, the tail wags the dog. But for the best, the dog wags the tail.
Snark note: As a SaaS CFO, I could have told you BILL was overpriced (and overrated). I cringe every time I join or hear of someone joining a company that uses it for AP.
While you make a really solid point about simultaneously issuing equity and buying back to minimize dilution, you assume stakeholders (public or private investors) understand this as well. For some, the tail wags the dog. But for the best, the dog wags the tail.
True. A lot of it is perception and many investors perceive it as good, which will have a price reaction. Long-term tho I think it catches up
You could likely use someone’s reaction to the decision to not buyback stock as a proxy of whether they’re a short-term or long-term shareholder.
Snark note: As a SaaS CFO, I could have told you BILL was overpriced (and overrated). I cringe every time I join or hear of someone joining a company that uses it for AP.
Amazing breakdown
Thanks Ethan!