Headline after headline say that companies “failed” and/or didn’t hit “targets”, but when you look at the numbers, the company made profits, sometimes in the millions to billions, it just wasn’t “enough”.
Is this greed? Why is it not good enough to make a profit?
In: Economics
Its perfectly possible for a good company that makes consistent profits to be overvalued. When company value is generally derived from its ability to make profits, if those are lower than expected then it goes down.
Sometimes it even hits targets and goes down anyways, because the targets the company sets arent always the expectation of the market.
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