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The market expects infinite growth. Imagine what would happen if a publicly-traded company announced that they would stop pursuing growth.
by nerdponx 3y ago
The market expects infinite growth. Imagine what would happen if a publicly-traded company announced that they would stop pursuing growth.
- dukeyukey 3y agoOf course it doesn't expect infinite growth. Companies _aim_ for it, but nobody expects them to do it.
- throwaway55671 3y agoNo, that's not true. There are plenty of stable market capitalization, dividend-generating public companies. Their cap-to-EBITDA ratio is much smaller, but that doesn't change the fact. Of course everybody expects the company to take advantage of opportunities - but it has to make economical sense. Nobody wants their company to try to grow so hard the whole company crashes.