I’m seeing a lot of companies that had tremendous growth over the past 3 years and at the first sign of “unmet targets” they take drastic measures (I.e. letting go of workforce). While their investors might indeed lose their confidence, sell their shares and, therefore, decrease the overall firm value, companies have made and still have lot of money in the bank, why do they need to care about growth, share price and what investors think to such extreme extents? Wouldn’t it be ok to just go with “we did not grow a single point this year and we have made the exact same profits of last year, that’s really good!”
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You’re separating owners and investors when they’re the same thing. Why would i give you money if your goal is to stay the same? There is what they call an opportunity cost when you invest in a company. You cant use that money to invest in a different company.
If you want to stay the same you might as well stay a private company then. While not every private company want to stay the same, there are a lot that do and that’s why they dont go public. They want more control over their company.
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