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Stock prices are tied to valuation which is based on expectations of growth. If you lower you growth goals and therefore projections, then the valuation tanks
by kangaroozach 6y ago
Stock prices are tied to valuation which is based on expectations of growth. If you lower you growth goals and therefore projections, then the valuation tanks and the stockholders value drops. Management and employees are motivated by equity in companies like Google and therefore rely heavily on growth potential.