[CoffeeCollector]

High corporate profits = higher share price ???

[Retric]

Actual profit is a backwards looking statistic, stock prices are a prediction of future profits.

[koheripbal]

"stock prices are a prediction of future profits."

No better prediction of future profits, than current profits.

[Retric]

If that was true you wouln’t see such wildly different P/E ratios. Current profit isn’t irrelevant, but it doesn't tell you much especially if the company just lost money.