> As far as I know, it's the forecast that missed the reality. I believe what you are inferring is a called "prediction", not a forecast. > It's incredible ho

> As far as I know, it's the forecast that missed the reality. I believe what you are inferring is a called "prediction", not a forecast. > It's incredible how twisted some vocabulary has become. Context is everything. Let me try to simplify the financial terminology: A company forecasts it's key statistics based on the internal finance team (for revenues, they'll work with sales to validate this for example). The market dictates the price of the stock based on the growth potential of the company. Stock price is a reflection of a firms ability to both grow (revenues) and control growth (forecasting). In other words, as an investor, I'm more likely to buy stock that is both predictable (rather, that it's forecastable) and has growth. In this specific case the forecast was incorrect, and thus they are being penalized for it. This is also why P/E ratios are so high for tech companies because their growth potential is generally seen as much high than non-tech. In other words they scale much faster than non tech.