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The last two publicly traded companies I’ve worked for had increased revenue YoY for several quarters but the stock price was smacked because the gains weren’t
by redserk 1y ago
The last two publicly traded companies I’ve worked for had increased revenue YoY for several quarters but the stock price was smacked because the gains weren’t enough. I looked around and this doesn’t seem to be an uncommon trend either.
15% may be hyperbolic but there seems to be a percentage of growth that exists where the company is still perceived as failing.
- nradov 1y agoStock prices for growing companies are highly volatile because no one really knows what the enterprise will ultimately be worth. This is fine. If investors actually perceived the company as failing then the stock price would be close to zero (or at least down close to book value).
- s1artibartfast 1y agoSeems like the relevant information is what the stock price was before and after. As nardov says, price is an estimation of future value, not just the current. As a result, it varies based on performance relative to expectation, as well as a wide range of external factors.