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How can you tell what the market thinks about this decision when a company's stock price is a function of what is happening publicly at the company AND external
by safdahfslh23s 4y ago
How can you tell what the market thinks about this decision when a company's stock price is a function of what is happening publicly at the company AND externally in the economy? How do you separate the 2 drivers?
- time_to_smile 4y agoCompare stocks with the highest correlated log returns. Anything that's economic should impact the correlated group the same, if it's company specific then that company will stand out. Most correlated with ADBE (all have > 0.8 correlation) that I see with there price change today are: ANSS (-0.77%) INTU (-1.94%) CRM (-1.73%) MSFT (-1.77%) ADSK (-2.61%) As you can see none of these stocks are experiencing anywhere near the drop today that ADBE is, so you can pretty reasonably explain the drop as company specific.
- somebodythere 4y agoAdobe posted earnings today.
- safdahfslh23s 4y agoYea, again how can you separate the market's reaction to 1) earnings from 2) the acquisition?