[rishabhkaul1]

Also, this is an interesting perspective:

Source: https://www.behindthebalancesheet.com/blog-1/amazons-free-ca...

/For most companies, the cost of stock-based compensation is ignored by the street.

Hence the stock based compensation does not appear as a charge against adjusted earnings and it does not appear in the cash flow statement – it’s not a cash item. Clearly this overstates the true profitability and cash generation capacity of the company. The options represent a dilution in shareholders’ interests and many companies, especially in the US, buy back stock to offset this dilution – a real use of shareholder cash. The shares are generally issued at a discount and the buyback is done at market price, usually some years after the option was issued (options generally vest after a period of years). Hence there is often a real cash cost to the company, while shareholders always suffer a diminution of value./