Mmhmm compare that with the sales numbers, then compare against any company in history which has had a similar sales pattern for a publicly traded company.
It’s not only “more”. The company I work for had “record profits, far and beyond anything we were expecting” in 2021. In 2022, we were told that the company made more than in 2021, but didn’t meet the earnings projections. That’s still record profits, but phrased like a loss.
Not only must the line go up, but it has to go up faster than it did before. Nothing less than exponential growth.
the way i understand it, the company has an obligation to fulfill “shareholder’s requests”, which is maximizing profits in 99% of cases, at least on publicly traded companies.
There’s no such thing. There COULD be something like shareholders voting on smthing and those votes are binding, but the agenda is declared by the company and can be only shiet like dividends rate, certain acquisitions, etc. Not the company strategy itself.
Publicly traded companies have to continually make more money than they did last month, last quarter, same time last year.
Failing to do so means they are somehow “losing” money that is “rightfully owed” to them and the stock market punishes them.
It doesn’t matter if you’re profitable or not, so long as you’re continually making more money.
Yeah, except for Tesla, how the fuck man.
Mmhmm compare that with the sales numbers, then compare against any company in history which has had a similar sales pattern for a publicly traded company.
It’s not only “more”. The company I work for had “record profits, far and beyond anything we were expecting” in 2021. In 2022, we were told that the company made more than in 2021, but didn’t meet the earnings projections. That’s still record profits, but phrased like a loss.
Not only must the line go up, but it has to go up faster than it did before. Nothing less than exponential growth.
It goes a layer further than that even. If the rate at which that growth is happening isn’t itself growing then investors start getting nervous.
They actually have a legal obligation to maximize profits.
Technically they don’t - it’s a lie told often by CEO. But its a lie. https://law.stanford.edu/wp-content/uploads/2023/01/Fiduciary-Duties-of-the-Board-of-Directors.pdf
the way i understand it, the company has an obligation to fulfill “shareholder’s requests”, which is maximizing profits in 99% of cases, at least on publicly traded companies.
Same document, section about Shareholders.
There’s no such thing. There COULD be something like shareholders voting on smthing and those votes are binding, but the agenda is declared by the company and can be only shiet like dividends rate, certain acquisitions, etc. Not the company strategy itself.