There's a Hidden Cost to Owning This Disruptor
Airbnb (NASDAQ: ABNB) is a disruptor. Its innovative app is a favorite with those looking for travel inspiration. And with a market cap of $68 billion, its stock is a favorite for many investors, too.
Yet, Airbnb stock has a hidden drag. It's one that many public companies have and often don't like to talk about: Airbnb utilizes share-based compensation to reward its employees.
There are arguments in favor and against share-based compensation. On the one hand, it aligns employees with shareholders. It gives them a genuine ownership stake in the company. But, unfortunately from an investing perspective, it drives share dilution.
Source Fool.com