Well, if you are going to make comments like this you should at least take a look at the financial statements before you do so!
Their expenses for 2003 include $229.4 million in stock-based compensation expenses. They are using an accelerated basis to account for these non-cash items, that arise from the difference in employee stock option strike prices and fair market prices (currently as determined by their Board). For the period 2004-2008, the yearly amounts will be $204.8 million, $96.3, $47.5 million, $16.1 million, $3.5 million, and $1.5 million.
As you can see, this is a decreasing item over time, and in any company valuation, analysts would adjust for this item.
Without this line, net income for 2003 would have reached $335 million, a net margin of 34.8%, which is an amazing number!
At a $25 billion valuation, this is still 75 times trailing earnings, which is arguably high, but still lower than some other internet companies.
Slashdot Mirror
Well, if you are going to make comments like this you should at least take a look at the financial statements before you do so! Their expenses for 2003 include $229.4 million in stock-based compensation expenses. They are using an accelerated basis to account for these non-cash items, that arise from the difference in employee stock option strike prices and fair market prices (currently as determined by their Board). For the period 2004-2008, the yearly amounts will be $204.8 million, $96.3, $47.5 million, $16.1 million, $3.5 million, and $1.5 million. As you can see, this is a decreasing item over time, and in any company valuation, analysts would adjust for this item. Without this line, net income for 2003 would have reached $335 million, a net margin of 34.8%, which is an amazing number! At a $25 billion valuation, this is still 75 times trailing earnings, which is arguably high, but still lower than some other internet companies.