Monday screencast: start-up economics
- abnormalreturns
- November 15th, 2010
In the past couple of weeks we have noted how what happens in the start-up world can affect what is going on with publicly traded stocks. That effect now seems more clear. Compensation costs are rising as companies try to compete with the likes of Facebook. Until Facebook goes public it will remain an uncertain force in the valuation landscape. In any event, maybe we shouldn’t get too worked up about what is going on with these companies. While some may think there are monopolies in the Internet world, history tells us that competition remains alive and well. In addition trying to scale in technology is difficult and speaks to the need for companies with excess cash to return it to shareholders. In today’s screencast we look at the effects of the start-up boom and its effect on other companies.
Items mentioned in the above screencast:
Om Malik, “The implications of this early stage investment hysteria are going to be felt across the ecosystem.” (GigaOM)
Why what happens in the start-up world matters for equity investors. (AR Screencast)
Facebook is worth more than EBay (EBAY). (Bloomberg via Daily Intel)
Compensation is on the rise at Google (GOOG). (AR Screencast)
Google didn’t stop with the rank and file when it came to pay hikes. (footnoted)
The challenge of being Google. (Information Arbitrage)
Google should also keep an eye on its tax rate. (FT Alphaville)
Don’t believe anyone who says that there are sustainable monopolies on the Internet. (Jeff Matthews, TRB)
Daily chart of Google. (Finviz)
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