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
The share price is what is is because investors expect the company to perform at some level. If the company does worse than the expectations were, it is relevant information because it should affect the share price.
The whole idea of capitalism is to utilize human greed for useful purposes. (=producing goods and services people are willing to pay for) Of course more profit is better than less profit, all other things equal. Companies try to get better return for investors than other companies, because that’s what they were founded for.
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