If I sold you a device for $1 and it minted $5 using $2 of electricity then you'd buy absolutely as many as you could as fast as you can.
However, if the devices stopped working when you had 100 of them you'd buy exactly 100 and if somebody made ones that only needed 50 cents of electricity you'd be looking to switch to those ones.
A company that is looking to downsize it's employee count is saying we are out of growth ideas and we're just going to do the same thing but more efficiently. Nothing really wrong with this except then your stock price shouldn't be like 100 P/E since there's no growth.
lesuorac|1 year ago
If I sold you a device for $1 and it minted $5 using $2 of electricity then you'd buy absolutely as many as you could as fast as you can.
However, if the devices stopped working when you had 100 of them you'd buy exactly 100 and if somebody made ones that only needed 50 cents of electricity you'd be looking to switch to those ones.
A company that is looking to downsize it's employee count is saying we are out of growth ideas and we're just going to do the same thing but more efficiently. Nothing really wrong with this except then your stock price shouldn't be like 100 P/E since there's no growth.
pphysch|1 year ago