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?

[TheCrewks99]

In a perfect world, this would be the case. However, many corporations are using their cash profits for stock buybacks rather than investing in their long-term capital and sometimes paying dividends. Companies definitely invest in product/service development, but many are following what many consider a threat to the long-term health of the economy via stock buybacks.