endoftheworld

Apple: Set to Double Again

Net of it is that in most cases, the market does NOT care what is actually happening as long as the reported number looks good.

If it doesn't, its up to the company to promote the "pro-forma" number.

Cash flow - what is that? You mean, companies should be measured on cash, not earnings? Who needs cash when you have great pro-forma "earnings"?

Most investors can't even read or understand an income statement, let alone a cash flow, let alone understand how stock option expenses or deferred assets/liabilities should be interpreted, which is why investors herd into and out of stocks.