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>That's three quarters of the way to bankruptcy, big red flashing danger lights.

Is it though? Were they funding operations by selling shares?



If their employees are paid in stock, yes.


Netflix famously does all cash comp.


Share based comp is accounted under a different line item then OPEX. And if the share price falls, more shres are used. If share prices rise bove projections, share based comp can become an issue due to the guaranteed number of shares outstanding all of a sudden becoming really expensive...




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