> it very explicitly cares only about the short-term price.
There is no short term price in stocks. Stocks are valued at their perceived long term value. If shareholders suspect a company is sacrificing the long term for the short term, they're going to dump the stock until the price of it drops to reflect that.
This also implies that if you can reliably detect that a company is eating its seed corn before everyone else does, you can make a mint shorting it.
There is no short term price in stocks. Stocks are valued at their perceived long term value. If shareholders suspect a company is sacrificing the long term for the short term, they're going to dump the stock until the price of it drops to reflect that.
This also implies that if you can reliably detect that a company is eating its seed corn before everyone else does, you can make a mint shorting it.