3 ms·
That just means the convention is deceptive.
by justicezyx 9y ago
That just means the convention is deceptive.
- fgonzag 9y agoIt's only deceptive to people who shouldn't be buying stocks based on those metrics in the first place.
- barbegal 9y agoNot really. In a conventional business revenue tells you how big it is so should be reported in absolute terms. And traditionally, dividends matter to the shareholders and that is directly related to earnings per share. Profits may increase in absolute terms but earnings per share could decrease as a result of issuing more shares (also known as stock dilution).
- Retric 9y agoIt's actually very useful to know earnings or loss per share as you buy shares not the entire company. Revenue provides different information, and is useful to figure out market share etc.