request: how does a company’s stock rise/fall so quickly immediately after earnings?
In: 0
Investors in companies can be anything from someone to a Robinhood account to large institutional investor with potentially billions invested.
Earnings in a public company are a closely guarded secret and nobody in the company is allowed to trade based on the information. Companies will give guidance on what they expect for the quarter in terms of revenues, profits, etc.
These companies will have quarterly earnings calls after a fiscal quarter. They explain what the earnings actually were. Everyone gets this information at the same time. Investors will look to immediately buy shares or sell shares depending on how the company does in the earnings call.
Latest Answers