Why do stocks that beat earnings expectations fall the next day? So if I am invested in something that I think is going to be expectations should I sell my position the day of earnings?
In: Economics
A lot of it is that there’s extra information that comes out during the earnings reports. So maybe they beat expectations this quarter, but they also report that they expect lower earnings in the next 1-10 years. So the bad news outweighs the good news.
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