New great products, in blue-ocean markets, creating new revenue sources, aren’t enough? For companies the size of 3M that “do everything”, do market traders just price in a certain stable rate of predicted innovation leading to geometric revenue growth / monopoly positioning / etc?
The current price is based on the predicted earnings growth. Everyone expects 3M to have earnings growth and that expectation is already baked in. The price is only going to spike if something unexpected happens. Growth would have to exceed expectations.
