BEAT STOCKS
BEAT STOCKS
Why does a stock price typically drop when a company releases earnings which beat the estimates?
Noticed that a lot of times, but do not fully get the logic behind it - if the bottom line is growing bigger - isn't that a good thing and shouldn't the stock price grow instead?
The market was probably anticipating those earnings and the price may have been moving uip before the earnings release. Reported earnings are old news and the market looks forward to the next quarter and beyond.
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