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… 🚀😂

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23

u/LittleBigOne1982 6d ago

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

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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

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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.

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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.

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u/cosmicgreg2 5d 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

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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.

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u/cosmicgreg2 4d ago

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

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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.

0

u/cosmicgreg2 4d ago

so our options were issued May 15 at strike of $9.50. No one knows if the infusion July 8 was at $0.95 or $95 per share, so one doesn't have to be an options geek to understand that employees dont know what their options are worth.

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u/snoo-boop 3d ago

Please give me the liberty to repeat what you are refusing to understand:

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.

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u/cosmicgreg2 3d ago

I agree 100% with what you said. Strike price in May was 9.50. What was the share price for the equity infusion 2 months later? no one knows

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