3 ms·
This trope of destroying the company for short term gains and raising the stock price gets trotted out all the time. But can you even provide an example of it?
by fallingknife 3y ago
This trope of destroying the company for short term gains and raising the stock price gets trotted out all the time. But can you even provide an example of it? It's not like wall st is made up of complete idiots who are going to keep falling for that.
- raizer88 3y agoUnity game engine
- fallingknife 3y agoLooks like they have never turned a profit, so how is this an example?
- Jochim 3y agoCEO has a track record of making damaging statements. CEO pushes though decision on a monetisation plan so stupid that people are screaming internally about it before it's released. The changes in question destroy the brand's reputation and decades of goodwill. Many customers actively port their games away. It's characteristic of short term thinking. The only concern is "what might raise revenue this quarter". If they'd thought beyond that they'd have seen that the damage to the brand is likely to be far more costly. This line of thinking seems to have become pervasive. No thought is given to producing something people want to pay for. Instead, they squeeze until people get fed up and the product dies.
- fallingknife 3y agoBut by your theory this short term decision making would be rewarded by an increase in profits and the share price. It hasn't been. This is just a case of bad management being punished by the stock market as it should be. The system is working here. Edit: not your theory, but the commenter I was replying to above.
- dagw 3y agoThe stock had been slowly going up the weeks leading up to the announcement, then crashed on the day of the announcement, has been going down ever since and is now trading close to its all time low.
- fomine3 3y agoGE?
- orwin 3y agoGood exemple. They doctored their balance sheets for years, managed to broke a _very_ lucrative deal with Alstom, buying it with GE shares (with doctored balance sheet, still) and with the help of the FBI, then the executives and the lawyers earned an impossible comp, after reality came knocking down 3 years later, and neither exec nor lawyers faced anything. Good job by them, they managed to set the industry back 10 years, and got rich doing so.
- mavelikara 3y agoBed, Bath and Beyond was discussed here previously, most recently at https://news.ycombinator.com/item?id=37637615 https://news.ycombinator.com/item?id=37637615.
- JohnClark1337 3y ago[dead]