> The failing here is not that the stock price dropped on results that were worse than the market expected, it's that the market expected too much in the first

> The failing here is not that the stock price dropped on results that were worse than the market expected, it's that the market expected too much in the first place, causing the stock to become overvalued. I don't really see how what I said disagrees with what you said - what I was pointing out was that a stock price falling when the company fails to meet expectations is good and rational behaviour. The problem is the bad analytics that caused the inflated expectations in the first place. Feel free to speculate as to the cause of that as you wish :-).