Why do profits need to go up every quarter?

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What would happen if a companies profits just stayed the same over a period of quarters? I obviously don’t understand it at all but isn’t it just unsustainable to expect growth indefinitely?

In: Economics

19 Answers

Anonymous 0 Comments

This is more of a thing for publicly traded companies, who want investors to buy their stocks. In some sense, each of those companies is competing with all the other companies for investor dollars. Investors general want their stocks’ values to go up, and the best way to get your company’s stock value to go up is to show consistent growth. So continual growth is how you attract investors.

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