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Well, the answer is in your question, it's all about expectations ; the market wanted more, didn't get it, and re-rates.
by bionsystem 2mo ago
Well, the answer is in your question, it's all about expectations ; the market wanted more, didn't get it, and re-rates.
- NetMageSCW 2mo agoEspecially when the expectations are informed by the company’s own guidance about what to expect and they are wrong. It means they missed their own predictions which doesn’t engender confidence.
- rwmj 2mo agoSure, but a prediction made 3 months ago turns out to be short by a few percent at most, and that leads to a 25%+ drop in the share price? That seems weird to me.
- bionsystem 2mo agoWhat if the market expected 25% more then reported ? Nobody "knows" what the market expects. People infer it by looking at forward valuation, company guidance, investor expectations, and many many other things happening in the world, in competition, in the value chain. And of course the market does its thing and figures that this company has x% chance of beating (or missing) by $y, and when it's wrong the moves can be huge.
- throwway120385 2mo agoIME you have to be true to what you predict. Whether you're predictably growing, predictably shrinking, or predictably flat if you blow your prediction that's when people start to worry that you don't know what you're doing.