Smart investors need to learn from the anticipated value of earnings. whether it is good news or bad news the ending results reflect not the company's inherent value but the economy as a whole and its place in it. Meaning most companies reporting earnings are doomed to drop in price after hours and the following day.
Take LCID as an example for this week. This evening 11/08/2022 after the market closed LCID earnings were released. They posted a less than great earnings last quarter. After hours, the stock price dips. What does this tell us? Well, you can look at some facts. This economic environment is heading toward a consensus of a recession. Meaning most 9-5 people collectively think a recession is coming. Posting good or bad earnings no longer guarantees stock will rise, in fact, it almost always means it will fall in this specific economic market. This brings us to my point about the inherent value of the company, this idea ties more to the macro effects of the economy on stock prices.
Earnings may in fact be a sentence to have negative stock movement. Pay close attention to what earnings are on the horizon. Things are going to be bumpy. None of this is financial advice.
How do we make money in a market falling?
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