Hi stock fam – wondering if anyone can provide clarification on phenomenon i've been noticing across a specific set of companies i've been following. I'm trying to better understanding if there are technical queues, indicators, momentum, or something that i'm just not seeing. At it's core my question is:
Why are companies which miss earnings seeing an immediate increase following their earnings call when companies which beat earnings see an immediate decline following their earnings callI acknowledge this company-by-company specific, my hope is that I can glean some wisdoms from the experts in this sub as part of my ongoing journey in options and investing in general.
below are 3 examples:
1.example 1 – beats earnings, stock goes down
- example 2 – missing earnings – stock goes up,
3 .example 3 – beats earnings, stock goes up
Example 1 : Oportun $OPRT
most recent q ibes estimated $.09 actual $.11.Prediction: stock goes up after earnings beat, what actually happen: stock down ~20% after.
Example 2: Coinbase $COIN
most recent q ibes estimated -$2.65 actual -$4.95, flat to up post earnings.Prediction – stock goes down after earnings miss, what actually happen: stock is up/flat
Example 3: opendoor $OPEN
most recent q ibes estimated $.08 actual $.19Prediction: stock goes up after earnings beat, what actually happen: stock goes up.
I share example 3 because its my understanding that this is what should happen, but clearly what the hell do i know.Thank you for reading.
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