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

Short answer: companies don’t expect to have earnings grow every quarter. They simply try to grow, and sometimes/often fail. This is expected behavior. No investment professionals genuinely expect a company to eternally grow beyond keeping up with inflation.

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