Originally Posted by
JBord
I get your point, and I don't generally have a lot of respect for analysts, so you might be right. But if I were an analyst, I think I'd rather here that the customers appreciate the unbundling strategy rather than hearing that customers must not understand that UA is a business. It sounds like I'm at war with my customers and they are confused/unhappy. Perhaps this was just a way to prepare analysts for the message that UA is losing more customers? They're leaving because they don't understand, but don't worry they'll be back after watching a few more cat videos.
Having worked with analysts a lot they really are simple creatures - like two year olds... They want to hear all the right things - and they want to hear "new" things to justify their recommendations - having an airline CEO talk like Jeff does is "refreshing" (at least to them).
It was a long hard lesson I learned when I worked for public companies:
Momentum (there is definitely a herd mentality on Wall street) + ability to drive stock price appreciation > business fundamentals + long term focus and investment - pretty much every day.... The great CEO's & companies figure out a way to deliver in the short term without sacrificing (entirely) the long term - in my mind UA hasn't figured this out yet - in multiple ways...
The reverse is true as well - and may well be Jeff's undoing - when things get tight, and UA can't grow revenues and starts to lose money - all these glowing analysts will abandon the stock so fast it will make your head spin - and then the board will do what boards do....