request: how does a company’s stock rise/fall so quickly immediately after earnings?
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Hedge funds have automated software triggers that keep buying or selling based on certain pre-defined triggers. Some of these can trigger purchases of 100s or millions of dollars impacting how quickly the stock moves up after a positive earnings release. Also large stock brokers like Fidelity, Merrill, Schwab and personal wealth management providers like Betterment, Empower etc are also selling wealthy people subscriptions to such robo advisor based accounts that will automatically adjust holdings in an account daily based on events in stock market. All this can add together to cause huge swings. Basically it’s a bunch of computers trading the stock in an algorithmic way
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