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It's temporary because these companies create shares every month to give out as incentives to their corporate suite.



...which are both predictable and included in the company's income statement ("stock-based compensation" is a line item).

Stock prices move based on unexpected information. If you've done your homework on the company's fundamentals, dilution from stock-based compensation has already been factored into earnings per share.

(Bad acquisitions are another matter - a much more common failure mode for dumb companies is to blow a lot of money on acquisitions and then fail to integrate the acquisition in a way that increases the bottom line.)




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