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It influences the direction of the stock price perhaps, but why the fundamentals?
by MattGaiser 6y ago
It influences the direction of the stock price perhaps, but why the fundamentals?
- xxs 6y agoThe easiest part - cut workforce to improve bottom line (and share prices, as management gets their own stock options), kill R&D. Engineers* quit as part of their remuneration packages are stock options. Overall perception and morale, hard to acquire new talents, etc.
- dclowd9901 6y agoCompanies can and do leverage the capital provided by their stock value, so just there would be an influence (less value = less capital = less ability to make market moves), but beyond that, I think, as others had mentioned, it could have an outsize negative psychological affect on the workforce. Plus, it could cause a feedback loop of sorts, as other investors might look at the short and jump in on the chance that someone knows something they don't, causing it to further decline, causing a multiplication on the above issues.