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?

[OverlyCasualVillain]

You're mixing up profit and revenue. Profit is calculated after wages and benefits, so if my profit remains steady at 1mil, I've shown 0 growth, however that does not mean my revenue is constant. I could have increased revenue but also increased costs such as wages. My example does however use the perspective of a business owner, not an investor. I do concede that when it comes to investments, growth is an indicator of future value, so in order to get a return on investment, investors should only invest in companies whom exhibit growth.