Over the past year Apple’s stock has taken a beating because the company missed stock analyst expectations and official forecasts. Samsung is facing the same issue. The company just reported a record profit on a diverse product line, and the stock went through another collapse as analysts adjusted their numbers and downgraded the stock.
Wait a minute.
Apple and Samsung are highly profitable companies in very competitive industries, and Wall Street seems to relish pummeling their respective stocks because the their financial numbers don’t meet up with the market’s expectations.
Here’s an idea.
How about if we downgrade stock analysts who were wrong in their quarterly forecasts? How is it Apple or Samsung’s fault if the company fails to meet some arbitrary number that an overpaid analyst probably pulled out of the toilet or the air (take your pick)?
It’s not Apple’s fault they don’t meet analysts forecasts. It’s not Samsung’s fault they don’t meet analysts forecasts. As long as they meet their own projections for a quarter there’s no reason for the stock to take a hit.
It’s the analysts whose forecasts miss that should take the hit. How about this? Whenever an analysts numbers miss the company’s projections, and the company meets their own projections, the analysts companies are put on a black list and forbidden to sell stock or make recommendations until the next quarter.
I like that idea.
What about Google? The stock market loves Google because it makes so much money doing that which is illegal. Already a number of states are pressing Google to stop selling advertisements for products which are illegal. What? Google is doing that? Of course, they are. They’ve been doing it for years, and taken to the legal woodshed a few times for accepting advertising dollars for ads which promote products which are illegal, sold without a prescription, or even totally counterfeit.
Do. Know. Evil, indeed.
What’s wrong with this part of the capitalist society where the stock market can punish a couple of companies for making oodles of profits, while falling in love with a company which is all but engaged in illegal activities?
Here’s an idea.
Every time Google is caught selling ads for products that are illegal, counterfeit (which would probably include ads for Samsung Galaxy smartphones), or drugs and painkillers that require a prescription, the company should have to pay a penalty equal to 10 times the revenue gained from such evil practices, and a reduction in the stock price.
Apple and Samsung would be helped by Wall Street forecasts more inline with reality, and Google would be helped to become a good internet citizen by retracting their evil ways.
These are ideas whose time has come, folks.