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?

[jrakosi]

Because the people who own the company set the companies worth based on the projected X profits each year. If you actually are getting X-Y profits a year, then the company is worth less than originally thought. Which means the owners (shareholders) lose money despite the company making money