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It is not just that Amazon could or could not turn profits at will. Turning a profit (paying dividends) or reinvesting is a decision every investor relations t
by gabriel34 8y ago
It is not just that Amazon could or could not turn profits at will.
Turning a profit (paying dividends) or reinvesting is a decision every investor relations team must make, simplifying the subject it is based on whether you predict your company will get the investor more money (by stock price growth/future dividends) than if he invested in other equaly risky set of assets.
I don't believe this is the case for Moviepass.
- kgwgk 8y agoIt’s funny to think of IR departments deciding on one of the most strategic capital allocation issues at any company (or maybe you consider that the CFO is part of the investor relations team, that wouldn’t be completely wrong but it’s not the usual definition).
- gabriel34 8y agoYes, IR doesn't make the actual decision. That was said to me by a IR I knew in a previous company. Granted the decision making was obviously above his head and included other strategic decisions and the intents of the key stockholders, to say IR makes this decision is an exageration, but he produced the data to support and justify that decision. How much is that number flexible I guess depends on market regulation.