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And yet, the stock goes down. Market expectation is truly unpredictable. FB missed revenue expectation and went up.
by didip 4y ago
And yet, the stock goes down. Market expectation is truly unpredictable. FB missed revenue expectation and went up.
- username_my1 4y agoBecause of something called P/E ratio
- tomatowurst 4y agosupply chain issues
- dubcanada 4y agoThat has about as much to do with earnings as a coin flip. If it was entirely that everyone would just buy based on P/E. and since that’s a public number all stocks would be predictable. Instead we have TSLA at 128 P/E and AAPL at 28 P/E, MDB is at 9 P/E and was -2 a few months ago. None of that makes sense it’s purely speculation. I’ve seen stocks completely miss and fly off good guidance. And stocks beat by a lot and sell off because there is no volume.
- rileymat2 4y agoStocks are risk adjusted speculation, we want to think they are not, but it is simply not true.
- shapefrog 4y ago>Because of something called P/E ratio It is not. It is about guidence for the next quater - Apple Posted Another Great Quarter. The Next One Might Not Be As Good. (apple themselves say)
- Someone 4y agoIf you assume the market estimates the true value of a company, any reasonable model will have it predict a company’s value with an error that may be either too high or too low. When a new data point comes in, the market adjusts its estimate. That can be lower than it was, certainly if its previous estimate was too high. It seems the market expected Apple to do even better.