3 ms·

My employer is making record profits every quarter and the share price is going down month after month. What shared success?

• sokoloff 4y ago
  Share price is driven more by future expectations than by past performance. Your record profits are nice, but are history at this point. What matters is expectations of profits going decades into the future and the relationship to the risk-free rate of return (which has risen dramatically recently, due to the expected future devaluation of the dollar).
  • lazyasciiart 4y ago
    That pretty well reinforces my point: share prices do not rise because employees have done a good job, profits do. RSUs are not, therefore a shared success model.
    • bombcar 4y ago
      And explicit profit-sharing exists and is found in some companies; but rarely Silicon Valley ones. (They seem more common in factory/service companies)