1) Past peaks aren't relevant to the value of options granted at today's prices. The question is whether GOOG will be higher or lower next year.
2) Options and equity that Facebook gives its employees aren't free. They have a market value, which Facebook is giving in return for an employee's efforts.
The real issue is that Google has more than 10x as many employees as Facebook, and its value is likely to be more volatile, which is good for risk-seeking employees.
Edit: Both Google has about 10x the Market Cap and 10x the employees, so they're at least in the same order of magnitude in terms of how much equity can be given away in each.
Investing based purely on fundamentals works for value stocks held for very long periods of time. I would not consider GOOG a value stock, nor a good long term investment -- which was the point I was trying to make. On both the short, and long term Google stock isn't looking great, which makes options at today's prices unlikely to be worth much, if anything.
Comments
A couple of issues with this:
1) Past peaks aren't relevant to the value of options granted at today's prices. The question is whether GOOG will be higher or lower next year.
2) Options and equity that Facebook gives its employees aren't free. They have a market value, which Facebook is giving in return for an employee's efforts.
The real issue is that Google has more than 10x as many employees as Facebook, and its value is likely to be more volatile, which is good for risk-seeking employees.
Edit: Both Google has about 10x the Market Cap and 10x the employees, so they're at least in the same order of magnitude in terms of how much equity can be given away in each.
* The question is whether GOOG will be higher or lower next year.
GOOG stock right now is making a triple top under the 2007 peak. It's done for. I dare you to go long. I double dare you to buy a call.
The bottom line is I would take any Facebook option at today's prices, over any Google option, period.
lulz at people who buy technical indicators over stock fundamentals
Investing based purely on fundamentals works for value stocks held for very long periods of time. I would not consider GOOG a value stock, nor a good long term investment -- which was the point I was trying to make. On both the short, and long term Google stock isn't looking great, which makes options at today's prices unlikely to be worth much, if anything.