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> This according to Wall St means they are failures. No, it doesn't. (edit: they are failures when it comes to keeping up their growth rate, yes.) But if previ
by jarek 14y ago
> This according to Wall St means they are failures.
No, it doesn't. (edit: they are failures when it comes to keeping up their growth rate, yes.) But if previous stock price was arrived at by assuming rate of growth would stay constant, the stock will drop if rate of growth drops, as according to best available prediction the company will be worth less in the future than you had previously expected.
Stock prices are influenced by all kinds of predictions, guesses, and voodoo for present and future. It's a good idea to not to attach too many personal feelings or judgments like "winner," "best," or "failure" to the stock for this reason.