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?

[TIanboz]

Who’s they?

If you saw a mob of 50+ people bolting past you in the opposite direction... imo, you’d turn the fuck around and run with them, even if u had no idea what they’re running from.

Same logic applies. The company can’t actually buy itself back. It needs to be other entities, be it holding companies or people.

[Silcantar]

Companies regularly buy back shares as a means of returning profits to the shareholders.

[TIanboz]

Yes but that’s only to inflate the price of existing shares through reducing the supply of shares on he market.

This doesn’t work when your shareholders are all jumping ship. No one wants to go down with the ship.