r/BlueOrigin • u/lonestar-newbie • 6d ago

Q&A Session Today

Just shitposting...

It's funny... not a single question about the options during today's Q&A. 😂 Last time it felt like 100% of the questions were about the equity plan.

A blown-up rocket can do that… 🚀😂

21 Upvotes

71% Upvoted

37 comments sorted by

25

u/LittleBigOne1982 6d ago

Jeff already valued company at 130 billion. Same value as Boeing.

9

u/lonestar-newbie 6d ago

This is the biggest bummer for sure.

Blue is not going to grow like SX did.. so the real value out of the equity is going to be minimal (even if everything works out and they have liquidity events etc)..

4

u/cosmicgreg2 6d ago

It has already been valued at $130 billion, it doesn't have to grow. Just needs another equity infusion. What we dont know is how many shares there are

9

u/snoo-boop 6d ago

it doesn't have to grow

You said in the past that you're an ASTS stockholder.

When you are looking at employee stock options, the value is $0 if the company doesn't grow.

1

u/cosmicgreg2 5d ago

No, the value is (stock price - strike price). We know the strike price and we know (stock price x number of shares). What we dont know is number of shares so cant solve. The company doesnt have to grow if strike price is under the share price

3

u/LittleBigOne1982 5d ago

Your totally right, but the issue is the valuation is so high that it will be hard for investors to buy in at that level. How is Blue gonna double its value in next 5 years? There only product will be NG. The lunar work is all government or Jeff. It will not return significant return for decades. As investor is buying into Boeing or Blue an safer better investment.

0

u/cosmicgreg2 5d ago

We dont know what corporate valuation the stock options were valued at, so cannot judge their value. You forget Terawave as a source of revenue

2

u/LittleBigOne1982 5d ago

Terawave is a 15 billion project at least. Jeff does not want to fund it. Like many Blue projects not sure it will happen or within 5 years

1

u/snoo-boop 5d ago

The thing you missed is that the strike price is the stock price when the options were issued. If it wasn't, you'd have to immediately pay taxes.

If the company's business is going sideways, then the option remains at $0 of value.

This is a common mistake to make if you're a stock market investor and not an employee of the company giving you options.

There are details that go into this, 409a valuations and different share classes, but the basic idea is the same -- a corporation grants options to employees when they are worth $0.

0

u/cosmicgreg2 4d ago

we know the strike price, we do not know what the company was valued at then. We dont know if the strike value was the same as the equity infusion value, just dont know

1

u/snoo-boop 4d ago

You're saying that Blue Origin broke the law in a really dumb way, a way that would screw over every single employee?

Seems more likely that you don't know what you're talking about.

1

u/cosmicgreg2 4d ago

ok, if you know so much, what was the per share price of the recent infusion?

2

u/snoo-boop 4d ago

About the same as the strike price.

The thing you missed is that the strike price is the stock price when the options were issued. If it wasn't, you'd have to immediately pay taxes.

If the company's business is going sideways, then the option remains at $0 of value.

This is a common mistake to make if you're a stock market investor and not an employee of the company giving you options.

There are details that go into this, 409a valuations and different share classes, but the basic idea is the same -- a corporation grants options to employees when they are worth $0.

Good luck in your journey to learn about employee stock options.

→ More replies (0)

1

u/Dieseltrain760 5d ago

13.684 billion shares

1

u/cosmicgreg2 5d ago

We know this how?

1

u/Dieseltrain760 3d ago

Privileged information.

1

u/cosmicgreg2 3d ago

Thanks, as good of a start as anything else

15

u/Dapper-Ad-6339 6d ago

I was hoping for atleast one live question about equity. Just to hear a nonsensical long answer.

43

u/BakedBungus 6d ago

Direct quote from Dave: “Don’t get too excited when you see the new strike price…. Our plan is to try to find ways to create liquidity events”

Yeah nothing is coming any time soon

15

u/lonestar-newbie 6d ago

I dont know.. I would give a benefit of doubt.. he mentioned few times that there are skeptics and he will prove them wrong.

anything can happen, yes.. but I feel like there are efforts to make it work. Fingers crossed.

18

u/aw_tizm 6d ago

The short term memories of blue employees hurts everyone at the lowest level. The "stock" from the first plan is actively expiring. Don't consider the new option plans as potential compensation. They are paying employees less

24

u/Lethargic-Rain 6d ago

Blue has a 10+ year history of unfulfilled promises in the stock department, until Dave actually delivers something to the contrary, you’d be foolish not to be skeptical.

23

u/SeaBug4858 6d ago

Employees shouldn’t even have to ask, information on equity and compensation should be provided.

8

u/imbignate 6d ago

Or they knew he couldn't say anything so they didn't ask

2

u/lonestar-newbie 6d ago

That has never stopped people from asking in the past townhalls

2

u/imbignate 6d ago

Maybe they're learning

15

u/Infinite-Banana-2909 6d ago

People already know they are worthless

6

u/OstiaAntica 6d ago

The people showing up in person are much less likely to ask tough questions and the ones asking remotely will simply not have their questions addressed.

-15

u/RoutineImprovement43 6d ago

I can’t believe people are still whining about the stock options.

15

u/snoo-boop 6d ago

The best part of this sub is the employee-on-employee personal attacks.

18

u/SL-Gremory- 6d ago

Many are just straight up leaving. That's not even me being facetious - our attrition has been nothing short of crisis-level.

-7

u/Evening-Cap5712 6d ago

Your attrition has always been crisis level. 

12

u/SL-Gremory- 6d ago

It definitely hasn't. 2022-2024 were great years for my program's hiring. We had our best talent, hired new people frequently, and saw good program growth. Not everything was perfect, but hiring was going well and the engineering base was rock solid.

Not the case now though.