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
Profits don’t need to go up every quarter and most of the time they don’t.
This is a false question.
For tech companies *revenue* has to go up every quarter, because tech companies aim to work on large scale, but servicing more customers doesn’t mean increased profit if your selling your stuff at a loss (which most tech companies do at first, so they can reach a large size faster)
For non startups like large established companies, any form of consistent profit is welcome, it doesn’t have to go up all the time as long as the company as a whole is matching inflation.
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