Another financial piety bites the dust

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

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