We think that stock prices are based on earnings or profits. But they aren't (except for stocks that pay dividends.)
A more sophisticated way of looking at it is that stock prices are based on how people view earnings or profits. More specifically, what they expect future earnings or profits to be. From this perspective, it makes a bit of sense - if everybody thought that Bard was going to be a huge new pile of money for Google, and now it looks like it won't be, then people think Google stock is worth less.
An even more sophisticated way of looking at it is that stock prices are based on how people view how other people view future profits. So if you think everyone else is expecting Bard to make Google a boatload of money, then if the Bard demo goes badly, it may be rational to sell, even if you personally didn't expect Bard to be any good.
>A more sophisticated way of looking at it is that stock prices are based on how people view earnings or profits. More specifically, what they expect future earnings or profits to be.
Stock prices are based on how people expect future stock prices to be.
A more sophisticated way of looking at it is that stock prices are based on how people view earnings or profits. More specifically, what they expect future earnings or profits to be. From this perspective, it makes a bit of sense - if everybody thought that Bard was going to be a huge new pile of money for Google, and now it looks like it won't be, then people think Google stock is worth less.
An even more sophisticated way of looking at it is that stock prices are based on how people view how other people view future profits. So if you think everyone else is expecting Bard to make Google a boatload of money, then if the Bard demo goes badly, it may be rational to sell, even if you personally didn't expect Bard to be any good.