4 ms·
What does corporate profits have to do with the stock market?
by Hikikomori 4y ago
What does corporate profits have to do with the stock market?
- CoffeeCollector 4y agoHigh corporate profits = higher share price ???
- Retric 4y agoActual profit is a backwards looking statistic, stock prices are a prediction of future profits.
- koheripbal 4y ago"stock prices are a prediction of future profits." No better prediction of future profits, than current profits.
- Retric 4y agoIf that was true you wouln’t see such wildly different P/E ratios. Current profit isn’t irrelevant, but it doesn't tell you much especially if the company just lost money.