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by bluGill 22 days ago
Maybe it isn't a loss, but as an investor (never directly in them), I consider 3% profit margin a bad sign - at that return I'd prefer a savings account: FDIC insurance means that after accounting for risks the savings account is better. I know stock returns don't directly track profit margin, but that is one input into the complex consideration of stocks.
1 comments

You are right, and this is why not everything should be a stock. Whatever they will cut to avoid emitting "a bad sign", may involve:

* firing people * making services worse * sacrificing their own future

Whether it actually does involve those things is effectively arbitrary, because the consideration of the "bad sign" is also arbitrary. If there is no objective value judgement of their operation there is no objective value judgement in their streamlining either, so all bets are off.

no percentage no good

"complex consideration"