If only businesses looked past the next quarterly earnings report all would be well. Productivity and profits would increase if CEOs would think long term. Investors hunger for such thinking.
Well, a large firm with earnings that beat analysts estimate by over 5% did that exactly yesterday and the stock dropped 6% today, Revenue rose 59%, but costs rose 41%.
The head, a brash youngster spoke saying that the ‘company’s long-term goals stretch more than a decade into the future and require “investing aggressively”.
Yes, this happened to Facebook. So much for the long term view