[bigbob]

Ah, but when public companies face the investment analysts, it is only “what have you done for me this quarter” that sustains confidence in a company, no matter how large the top line is.

[Dr. Sivana]

Ah, but when public companies face the investment analysts, it is only “what have you done for me this quarter” that sustains confidence in a company, no matter how large the top line is.

Yes, but ultimately that just reflects the perceived value of the company. If some analyst saw 20% growth for the next five years straight, the stock would have been overvalued, and due for a correction.

The stock price going down does not always correspond to the underlying solidity or profitability of a company (unless it goes WAYYYYYYY down). Marginal companies that do better than expected can see their value go up, yet they remain marginal companies.