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>there is something deeply wrong with capitalism Really? Current stock prices reflect the expected future cash flows and the cost of capital. When new inform
by stvswn 11y ago
>there is something deeply wrong with capitalism
Really?
Current stock prices reflect the expected future cash flows and the cost of capital.
When new information changes the expectation of future cash flows -- like, say, a quarterly report that indicates growth is slower than estimated -- you'd expect the price to drop.
No one is saying that Apple didn't make a lot of money. No one said they aren't a great company. They're saying "the picture of the future just changed a bit."
So, what's wrong with capitalism? What's irrational here?