3 ms·
This points to a fundamental misunderstanding of how the stock market works. People see Facebook reporting 42% increase in earnings and the stock dipping 20% a
by imperio59 8y ago
This points to a fundamental misunderstanding of how the stock market works.
People see Facebook reporting 42% increase in earnings and the stock dipping 20% and think Wall Street is crazy. It's not. The revenue growth was already factored into the current price of the stock at the time before the earnings call. When the stock failed to meet the expected revenue and other key metrics, the stock price corrected by some people selling who were expecting better performance.
This is Wall Street 101. The author should know that and not forward the stupid cliche of "The company's revenues were up but the stock tanked, Wall Street is insane!".