[s1artibartfast]

investors care about long term profits. If they magically knew that income would fall this quarter and 2X next quarter, the price would go up.

The challenge is that they dont have magic powers to see into the future. If a company income is falls this quarter without a compelling reason such as investment, this data indicates that the company will not do good next quarter.

The are tons of examples of company stock prices increasing due to a acquisition, despite a lower quarterly profit.