Wayneqq
2022-04-12

Earning season is here... but what i learn so far is company earnings do not necessary translate to stock price movements..the company can post fantastic earnings that beat estimates.. but stock prices still go down.. or the company can post so-so earnings that might have miss expectations.. but stock prices still go up.. especially for meme stocks or companies withCEOs that are more famous than run of the mill celebrities..

Short term price movements are dictated more by sentiments and news of the day.. earnings season is no different.. but for long term investors.. this is a good opportunity to understand more about the company execution.. cashflow and financial state and determine if your investment thesis is still valid or the company isshowing signs of going down.. 

If the company is still growing and making profit and the stock price goes down.. it might bea good time to buy..

Stay safe.. stay invested and do not FOMO [Grin] 

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Comments

  • AdrianTan
    2022-04-13
    AdrianTan
    What we have seen in recent earnings is in how stock prices react to company outlook and guidance. A stock can beat during the quarter but slight weakness in outlook would send things tumbling.
    • WayneqqReplyAdrianTan: 
      Agree! [Strong]
    • AdrianTan: 
      High valuations = high expectations as always. Recent mood of interest rate rise though also have caused markets to rethink valuations
    • Wayneqq: 
      Interesting.. my guess is overvalued stocks with high expectations would tumble with a weaker guidance.. but it does not always look that way either..
    • Wayneqq: 
      I think is a mismatch in expectation between analysts from big players and company guidance.. big players sell or buy.. change prices a lot.. but fundamentally.. company is ok..
    • AdrianTan: 
      Most definitely. Companies that grew triple digit percentage points YoY then forecast to grow low double digits next year are punished when growth on top of massive growth is a good thing
  • VirgilLouis
    2022-04-12
    VirgilLouis
    If it was the right time to enter the market, what type of stocks would you buy?
    • VirgilLouisReplyWayneqq: 
      For example, Microsoft, Google, Apple, this type of company, are the top of the industry.
    • Wayneqq: 
      Good companies with solid fundamentals that will still be around and growing in 10 years time
  • PhilipJones
    2022-04-12
    PhilipJones
    The current market is not stable and I think it will continue to pull back.
  • BobbyLopez
    2022-04-12
    BobbyLopez
    I don't think now is a good time to buy.
  • RoaringTiger
    2022-04-13
    RoaringTiger
    Market sentiment affect the short-term more, yes. But the report would give data as to whether the company is worth investing for the long-term
  • Ken7979
    2022-04-13
    Ken7979
    agreed. market sentiments is driving the prices
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