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This is relatively new behaviour that only showed up around fifteen years ago, during the crash. Before then publicly traded companies such as DuPont or IBM wou
by Tanoc 3y ago
This is relatively new behaviour that only showed up around fifteen years ago, during the crash. Before then publicly traded companies such as DuPont or IBM would settle for a very gradual increase if it meant they had a stable market and dependable revenue stream. Especially if they had majority control of that market, since they could already squeeze customers for whatever amount they wanted, as Bell and Microsoft did. It was the smaller volatile companies like Keurig that disregarded five and ten year market projections and went for massive market expansion and quarterly or yearly profit increases because they were competing against giants in their respective or adjacent industries and needed to grow big enough fast enough not to be squashed. Between 2000 and 2008 the DOW and NASDAQ indexes stayed around the same level, then they cratered in 2008, and by 2011 they just started going up and up and up like they had back between 1982 and 1989. Except so far we're twelve years in and it hasn't slowed down, unlike the slowdown that started in 1987.
Companies changed up the way they did things starting in 2008 in order to survive, but sticking to that short term panic survival tactic is coming to a head. They've done almost everything possible in order to ensure growth, but the public just can't handle it and things are starting to collapse under the weight of near maximum monetization.