4 ms·
Stock prices rise and fall based on the popularity of the brand. Sure earnings and other announcements nudge a stock up or down for a week or two, but it's real
by snorkel 14y ago
Stock prices rise and fall based on the popularity of the brand. Sure earnings and other announcements nudge a stock up or down for a week or two, but it's really the reputation of the brand that keeps the price up. In this regard FB's biggest risk is people will get bored of FB. This is a risk Google hasn't had to face yet, as everyone still relies on Google for search, but FB is mostly for entertainment, and people will eventually get bored of it. Remember yahoo?
- tomkarlo 14y agoUltimately, it's profits that drive the value of a stock, not the brand. Yes, Apple is a popular brand. But you can't really say the same for Chevron, Exxon or Merck, all of which are top 20 stocks.