How does all this add up? Is Wall Street so stupid to encourage all products to enshittify thereby leading to their own loss of investments?
You can invest (spend more) and hope that that investment yields more revenue down the line. This is bad. Wall street doesn't like this, because you're definitely making less profits now because you're investing money you could've given back in profits, you might make more in the future - but no guarantee. Risky! Wall street hates this!
You can raise margins. This can be good. As long as demand is fairly inelastic this will pretty directly translate into profits. But you can only do this for so long, by definition you just always want to do this until you can't any more, so you've probably already pulled this lever as much as you can.
You can cut costs. This is good. Wall street likes this. You definitely get more profits right now. It could impact your ongoing growth, but that's just maybe! You can be more efficient right? And even if it does impact your future growth that's not going to show up for years. So right now, you're more valuable!
Wall Street will be the last to find out the emperor has no clothes. That is called a stock crash.
I see it as an extension of the tragedy of commons, no individual wants to destroy the finite resource, but everyone exploiting it to exhaustion always will
And, sometimes, they are right.
It would cost too much for customers to switch.
Enshittication makes earnings go up. Not infinitely, but for long. Enshittication is not done for fun, it is done for shorter term profit and Wall Street is all about that. Eventually it will go down and Wall Street will desert the company, moving money into something else to enshittify it.