As far as I understand, the only thing that investor really get from the company’s profit is mainly from dividends. So, all other P/E ratios, fundamental analysis, chart analysis, etc for stock price growth are no better than just looking into a fortune-teller’s crystal ball? Stock prices seems to be almost entirely driven by “market forces” aka what people feel about the company. Whatever those “expert” analysts say seems to be just trying to put meaning into something that really doesn’t actually impact the stock price, not much difference from horoscope? There are many big profitable companies with almost flat stock prices and there are also companies without any real profits but the stock prices skyrockets.
In: Economics
Well if you bout stock at 1dollar a year ago, and today published its accounts and it’s made say 400% more than expected, your share is prob going to go to say 2dollars even though you may only get a 10cent revenue so if you choose to sell your share price had made 10times more than the dividend.
This is super over simplified btw.
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