I remember when I was just beginning my investment career, I was often confused about market reactions to company news. One day, a company would comfortably beat earnings expectations and the share price would rise substantially. Then the next day or a few days later another company would beat earnings expectations just as comfortably and the share price would decline. In the financial press, you would then read explanations that pointed to a bottom-line beat but a decline in margins or an unexpected increase in costs to justify the share price decline.
Such are market reactions to fundamental news
Such are market reactions to fundamental news
Such are market reactions to fundamental news
I remember when I was just beginning my investment career, I was often confused about market reactions to company news. One day, a company would comfortably beat earnings expectations and the share price would rise substantially. Then the next day or a few days later another company would beat earnings expectations just as comfortably and the share price would decline. In the financial press, you would then read explanations that pointed to a bottom-line beat but a decline in margins or an unexpected increase in costs to justify the share price decline.