this post was submitted on 01 Feb 2024
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[–] [email protected] 183 points 9 months ago* (last edited 9 months ago) (33 children)

The problem is the way the system is rigged.

Kroger is a publicly traded company, their stock price right now is 46.71 / share.

You can see their most recent earnings report here:

https://ir.kroger.com/news/news-details/2023/Kroger-Reports-Third-Quarter-2023-Results-and-Updates-Guidance/default.aspx

Operating Profit of $912 million; EPS of $0.88

Now then... for NEXT quarter... It doesn't matter if they are profitable or not. Because they are publicly traded, they are going to be expected to make MORE profit than they did this quarter.

Let's say next quarter they "only" have $890 million in profit... Most of us would KILL to be that profitable.

The stock market analysts will look at it and go "yeah, but you 'lost' $22 million from last quarter..." and they will punish Kroger for failing.

Even worse...

Let's say Kroger raised their prices and pulls in a profit of $915 million next quarter... they can STILL get punished if the market goes "Yeah, but our analysts expected you to bring in $921 million in profit."

Failing to meet or beat "expectations" is just as bad as raking in less of a profit than last time.

So prices go up, because they have to make more money than the same time last month, last quarter, last year.

[–] [email protected] 4 points 9 months ago

And disregarding those expectations can carry personal liability for anyone in a position to do it, because the executive leadership of the company has a legal responsibility to act in the interest of the shareholders above all else.

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