• TranscendentalEmpire@lemm.ee
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    9 months ago

    Yeah, but investors really don’t care about the price of a stock, they care about how much the price moves once they own it.

    It’s the inherent problem with publicly owned companies. Even if you perfected a mode of profit, unless you improve upon perfection next quarter you’re in hot shit.

    You can only squeeze so much profit out of any one gimmick, after that the only way to mimic growth is by cutting labour costs, and eventually diverting investment funding into profit for shareholders.

    • frezik@midwest.social
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      9 months ago

      Not necessarily. Investors also care about dividends. Those tend to be the people who hold on long term. Blue chips, as a class of stock, are all about companies that don’t make big moves in price and pay out in dividends. They’re older companies that have built their product line, and while they still do R&D on new ones, they only do that to make sure they don’t get left behind.