Microsoft strongly encourages users to switch to a different browser than Internet Explorer as it no longer meets modern web and security standards. Therefore we cannot guarantee that our site fully works in Internet Explorer. You can use Chrome or Firefox instead.

There's a Hidden Cost to Owning This Disruptor

TheMotleyFool

0 0

There's a Hidden Cost to Owning This Disruptor: https://g.foolcdn.com/editorial/images/709184/vacation-rental-airbnb-real-estate-beach-property.jpg

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

Like: 0

ABNB

Share