Smart Object Functionality and Sharing

Do embedded smart objects transfer to other users on a different computer and a different Adobe CC account without loss of linking? So let's say I am working with a team and I share my PSD file that has embedded smart objects, will the smart object show as a missing or broken link when another user opens that file because there is no history or locally hosted data about that file on the new user's computer?

I am aware of the linked smart object option, but that requires handing over a folder of files or having files linked to a mutually accessible remote server. My question is about true embedding as you would see in Adobe Illustrator. When you embed files there it is carried within with the AI file and requires the passing of only that single AI file.

I ask because I have received or passed PSDs to other users and have had issues with people saying that the original smart object is not accessible or is missing even though I am using the embedded smart object option. I feel like the documentation that I've read on the Adobe site seems straight forward, but the results have been confusing.