> It's the profit drops by 35%, they still earn the 65%.
True - but people will have bought their stock based on the 100% figure. Not making the 100% causes people to dump the stock, dumping the stock leads to further people dumping the stock, which leads to a bad situation for the company (less funds for research and development, lessened ability to weather further downturns)
True - but people will have bought their stock based on the 100% figure. Not making the 100% causes people to dump the stock, dumping the stock leads to further people dumping the stock, which leads to a bad situation for the company (less funds for research and development, lessened ability to weather further downturns)