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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 247.70+1.3%10:35 AM EST
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To: Victor Lazlo who wrote (92530)1/29/2000 2:47:00 PM
From: Lizzie Tudor  Read Replies (2) of 164684
 
I think in many ways, msft is entering a new phase of its life, and whether good, bad or indifferent remains to be seen. Co is moving from hyper growth and market share domiance into middle age, imo.

One thing I do think may result- lots of those vested options held by employees could be sold off this year.

Re: options and fear of stock decline when employees cash out... I think a lot of people don't realize that "cashing in" options are now considered ordinary income. It didn't used to be that way - options used to be capital gains like all other stock transactions but I know since at least 1995 the ordinary income rule applies.

What this means is, for mature companies like msft - there is an incentive to exercise options when the price is LOW... as opposed to wait for all the gains you can get and then cash out. Also spreading the exercise dates is a good idea. For msft I'll bet a lot of employees exercised all they could every year - they knew it was going up - then they would hold the stock following exercise for capital gains.

So I would expect that the msft employees have exercised as the years go by. Its not like a startup with a lockout and everyone needs the money to buy a house or car, fwiw. Of course there is certainly a lot of stock in the hands of insiders that have held since exercising and they may want to sell that.
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