Like, Company A posts 5 Billion in profits. But if they post 4.9 billion in profits next year it’s a serious failing on the company’s part, so they layoff 20% of their employees to ensure profits. Am I reading this wrong?
In: Economics
It’s just inflation.
Money today in the US is 20% less valuable than 4 years ago because of high post-Covid inflation. So a company with the same profitability as 4 years ago is reporting 20% higher profits today.
There are outliers, like NVDA which makes AI chips where the demand has skyrocketed since ChatGPT, but that’s not how most companies are doing it.
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