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> Our stock price shot way up. This would imply that a company's stock price is directly influenced by its productive output; in reality, it's only very tangen
by gottorf 3y ago
> Our stock price shot way up.
This would imply that a company's stock price is directly influenced by its productive output; in reality, it's only very tangentially so. Especially for low-profit, high-growth tech companies, I'd wager the federal funds rate's effect on the stock price is way higher.
- lizknope 3y agoMy company's profits were up in 2020-21 and then we went back to the office in 2022 and our profits and stock price dropped. We had 500 openings in 2020-21 and then we laid off 8% of the employees in 2023. I joke in meetings that we just need to go back home and we will make more money. I work for a fabless semiconductor company that makes chips for data centers and other applications, not a software company.
- gottorf 3y agoNo argument against your company's WFH productivity! But: > 2020-21 and then we went back to the office in 2022 and our profits and stock price dropped The broad stock index rallied like crazy 2020-21 with ZIRP, then all of 2022 was a bear market that followed rate hikes. The S&P 500 rose almost 50% from January 2020 to December 2021, then lost about 20% in 2022. So it's not unreasonable that your company's stock price followed that trajectory.