4 ms·
He is talking about the effect on stock price. The second scenario results in lower margins. Stock market analysts look unfavorably on this.
by rawgabbit 1y ago
He is talking about the effect on stock price. The second scenario results in lower margins. Stock market analysts look unfavorably on this.
- jaynate 1y agoDepending on what you’re optimizing for could be revenue (high growth) or Net income per share (lower growth). Reality is once you’ve established a baseline it’s difficult to move from one to the other or have substantial changes to the negative for either.
- lotsofpulp 1y agoAny investor with half a brain is not solely looking at one specific margin to analyze an investment. That is why you compare profit margin and operating margin and revenue and other measures to build a more accurate picture.