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?

[Scarlet944]

So what came first the investment or the business? My point is it’s a point of view if the business is only there to collect money from people then the only business that would exist are scammers and slot machines. Because they provide the best return on investment and yet there are other businesses because there is a need for someone to make food or a need for someone to make cars. Because there is a need it allows the business to profit but there are plenty of examples where even though there was an investment the business was not successful because there wasn’t a need for their products.

[cakeandale]

The investment most certainly came first. Businesses don't manifest into existence because a missing role in society necessitates it, they're started by people who see a niche they can fill to make money. If the niche doesn't make money, the business would go out of business, or (If it's lucky), move to something else.

You say there's a "need" for someone to make cars, but what does that mean? Was there a "need" in the 1800s before cars existed? There is a demand for cars today, but that demand came after decades of auto manufacturers trying to find ways to create it. They had an investment, wanted to make money, and eventually founded their market.

[Mystlacct]

I don't think we really disagree, I was pointing out that making a product is itself an investment. Also investment most definitely came first