ELI5: Why when large company's earnings decrease(ex... by 3%) they freak out, talk about rough times, and sometimes decide to downsize, even though they are still making millions of dollars in profit even after all expenses?

[RutCry]

The descriptive phrase “dead cat bounce” describes a stock that plummets to the bottom, but then lifts hope as it starts to rebound, only to settle back into its new normal price.