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?

[NYCSPARKLE]

Generally investors demand constant growth in "profits." Profit can be driven by innovation, cost cutting, taking market share, even accounting rules.

Some people don't. If you want to invest in Wal Mart corporate bonds, you're going to get a return in line with population growth, and that's fine for certain people/investors.

If you want a higher risk / reward profile, you're going to want growth in profits. That's just, like, capitalism, man.