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by _3u10 5265 days ago
The stock market is an expectations game, it doesn't matter how you do what matters is if you beat expectations. If Groupon manages to lose half as much money as predicted then it will be hailed as a major success despite losing money.

If a company consistently outperform expectations then people will also get upset at them. (AAPL) The company can get in big trouble with the market if they make people who usually make money lose money like how the Porsche family short squeezed a number of prominent hedge funds. Note that when hedge funds short the fuck out of a stock with borrowed money on borrowed stock it's not market manipulation, but if a family were not to trade their stock because they have no need to create liquidity for market participants then it's market manipulation.

The rule in the finance industry is that if the banks aren't able to profit from your stock price movements then your company is probably doing something illegal according to the securities industry.

Unless you are exercising a trading strategy (expectations game) you should generally not give a crap about stock price movements, instead you should look to things like moats, book values, and other things and then check whether the stock price is a reasonably accurate reflection of the value of the company. In this case Yahoo is probably a decent investment which is why many companies are looking to buy the asset.