On average, what happens if a stock beats estimates and shows a profit?


Disclaimer: Allbirds position of 40 shares.

This post is intended to be unrelated to the specific company or stock so please feel free to add anecdotes for others that I can refer to.

I haven’t invested in anything yet that has had an EPS better than -0.10. Allbird’s is the first that has an estimated EPS right around there, and I am confident that they can beat that. Is it even worth the extra investment though? Like is the stock going to explode if it beats estimates and is profitable? I know it’s an IPO and a foreign stock which can derail things a bit.

In a vacuum, a stock with a low estimated EPS ends up beating estimates. Is this a bullish sign, something to double a position on, or just sit tight and wait out the market?

Thanks in advance, and I often times misunderstand some of the etiquette on this subreddit. If this question or posting too specifically about financial advice is frowned upon, please let me know.


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