Politics.
replyTech shareholders want executives to take risks building new products. Of course they’d prefer the products be successful but if the options are “hire 30k people 50% chance we have to lay them all off” or “don’t build new products” most tech shareholders want option 1.
replywhere do you pull 50 percent number for oracle?
replyEven if the number is 10% they want the company to take risks. Big tech shareholders number one goal is not becoming IBM
replyanyone can get any random shower thought funded by this logic. Thats not how investing works.
replyThen why dont executives got punished by investors when they take risks and fail? The answer clearly is that investors want the risks to be taken and understand the downside that comes from taking risks.
reply> Then why dont executives got punished by investors when they take risks and fail?
replythey do?