In Wall Street, Financial Difficulties Drive Shares Up
Last night: "LinkedIn Layoffs at Microsoft: Probably Well More Than 5% of Staff"
Also last night:
Suppose a company has financial issues and can barely do payroll (this can be said about Amazon at the moment, as it is delaying salaries, playing with the money of its workers, and borrowing lots of money, not to mention a lot of compensation for staff comes in the form of stocks, not money). Suppose there are mass layoffs due to financial problems. Wouldn't shareholders take that as a sign of trouble and sell their shares? No. Wall Street doesn't work that way. The more layoffs happen, the higher the shares go. Then folks wonder why shares go up for companies whose real (measurable) value goes down. █