Daily stock movements are practically random. Stocks go down even if earnings beat estimates.
40% of the time, options prices move in the opposite direction of the earnings surprise.
For those who are skeptical, this is not magic. The reasons for it are all the reasons you might expect: the biggest investors may not agree with the market consensus, the analyst consensus doesn't weight analysts by credibility so the "credible" analysts may not match consensus and so on.
Only if you beat estimates by less than people had estimated you would.
Workday beated estimates by over 50%, yet shares fell. I can give a lot more examples...
Lots of investors also sell when earnings beat estimates because they think they'll be selling high, etc. Point is there are tons of factors and it is way too simplistic to say beating earnings = price increase on that day.
Point is there are tons of factors and it is way too simplistic to say beating earnings = price increase on that day.
Absolutely agree.
Par for the course for AAPL at earnings time for many years, not so much recently. Beat earnings, but didn’t beat the “whisper number”.