I do not recommend using stock-price changes, either up or down, as a significant measure of performance, even economic performance. Stock price puts far too much emphasis on one stakeholder—the shareholder—and is driven by external factors that have little to do with internal economic performance. Its use leads to poor decisions by people who work in the organization, and, as I will argue later, it distorts the real purpose of a company and discourages a more balanced approach to measuring success.
