eli5: Why is it not good enough for a company to turn a profit, why do they have to hit “expectations”

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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

17 Answers

Anonymous 0 Comments

Let’s consider this from a different angle.

Why is it not good enough that you get paycheck, why does it have to be as big as you expected the paycheck to be?

Just like you would be disappointed if you got a paycheck for $200 instead of $500, someone who owns part of a business is going to be disappointed if that business makes less money than they expected it to.

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