Why can a stock fall after its company reports an earnings “beat”? Because inv… · @freestyle_error · TwKit

@freestyle_error

Why can a stock fall after its company reports an earnings “beat”? Because investors aren’t just pricing what the company earned in the past. They’re pricing future growth—and what it will cost to achieve it. When a stock drops after earnings, is the market too pessimistic, or were expectations simply too high?

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