this post was submitted on 15 Nov 2023
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If valve were public, and required to make a lot more money than the previous quarter, they would absolutely need (want?) to get the maximum amount of money from wherever they could. It's what I think it's happening with netflix & others. It doesn't matter that (hypotetically) they make a billion dolars of revenue. They need to make more next quarter. So they need to raise prices, forbid account sharing, reduce content quarity, anything to earn as much money as possible for next quarter.
Volvo could earn a billion dollars, and if they don't want to earn more, they could happily stay the same. They might even want to make moves thinking on the long term, such as keep customers happy and excited, or invest in new technologies like proton. Compared to netflix execs, who don't care about the long term, they care about next quarter.
I don't know a lot about the stock market, but it looks stupid to me to bet on infinite growth. If the company earns money, and I own shares, shouldn't I earn money via dividends? It looks to me like the only way to make money is to buy low and sell high? Or is that just greed?
You do. Companies give dividends all the time (well, every x months, usually at least yearly).
Just greed... mostly. A lot of people want to "get rich quick", and a bunch of already rich people like to gamble to get even richer, so a lot of market volatility comes from greed... but a share price with good growth expectations can make it attractive enough that the company may decide to give lower dividends (no need to attract people), so if you can "buy low, sell high", you may still want to do it regardless.
You can still ride the market mostly on dividends by diversifying and investing into multiple companies whose share prices will average out in the long run (picking the right diversified portfolio, is an art on itself).
That's mostly an effect of tying C-suite compensations too closely to share prices, with no further checks in place. When the main driving force behind the decision makers is increasing share prices, they'll happily burn down the whole company, cash out, and jump ship.
Sometimes it's done on purpose, when some long-time investors grow tired and decide to cash out, maybe because they expect a change in the market and the company becoming less competitive or even obsolete. If the expected changes are big enough, it's easier to start a new company from scratch, than to restructure an old behemoth with thousands of people used to doing things "like they've always been done".
The fact that you said Volvo on accident brings me back to the old ThioJoe troll days