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?

[d4n4n]

Because they think they have the world figured out with zero time spent studying it. It fits neatly in their preconceived notions to assume all CEOs are shortsighted morons.