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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (78477)	11/9/2025 12:14:12 PM
From: Sean Collett	Read Replies (1) \| Respond to of 78774

RE: SBC As for earnings, if you look at SNAP stock-based comp expense section you can see it is embedded in the COGS, R&D, S&M, and G&A section. The other hit is if equity packages are cash settled so instead of getting stock they just get paid out as cash right at the vesting period. Aswath Damodaran has taught that SBC is an in-kind expense and thus if you look at FCFE or FCFF you should not be adding this back in as you would essentially be arguing that you can stop paying employees. So unlike D&A which are not real uses of cash and are added back, SBC should not be added. As for SNAP if we look at the 10-Q from the same period in 2024 the A shares had 1,423,056,065 outstanding (not accounting for dilution) and in recent 10-Q they have 1,465,208,378 - ~3% increase in A shares in one year. Your analysis of SNAP is indeed correct. -Sean EDIT: All this with $500.573M in common repurchases in 2025 - front door buy-backs taking place here.

To: Madharry who wrote (78477)	11/9/2025 6:32:31 PM
From: robert b furman	1 Recommendation Recommended By roguedolphin Read Replies (1) \| Respond to of 78774

Hi Mad, Options candy is dilution of the shareholders! If the company was so great, why wouldn't they keep the shares for appreciation.? ESOPS that primarily go to the top management, and not the lowly worker, that serially get sold upon issuance is the best tip to sell out on pops. Companies that buy back shares, so the ESOP does not dilute the shareholder is a neutral move. If they pay a dividend and increase it, it is a shareholder friendly company - my kind of buy! Read the non-gaap reconciliation to form your view on how friendly and profitable the company is. NON-GAAP earnings has evolved into a scourge in modern accounting, in my very conservative view. IT is options candy for upper management ,who justify it in their "Peer Compensation analysis" PERIOD! Bob