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Don't investors realize that mathematically, a business cannot grow at the same rate forever?

• 2_listerine_pls 8y ago
  The question to ask is whether it's due to internal or external factors such as market saturation.
• hunter23 8y ago
  Of course they do, they just value you differently. When companies announce slower growth it impacts their valuation because it impacts the discounted value of their future cash flows.
  • refurb 8y ago
    Exactly. You can think of the stock close price as having two components:current value + expected future value (of cash flows). If a company grows more slowly, you’ll see the 2nd decrease, but the first will stay the same.
• vm 8y ago
  This piece wasn't written by investors. It was written by two opinion columnists at Bloomberg, the same publisher that refused to retract its widely refuted story about the Chinese government hacking Amazon & Apple. That aside, sometimes people post stupid things on the internet.
• a13n 8y ago
  Not with that attitude ;)