Earnings reports are companies turning in their homework, and everyone’s holdings may get “regraded” too 😂
A company can turn a profit and still see its stock price fall; mediocre results may actually be welcomed by the market. So what should you really look at in an earnings report?
① To judge whether performance is good, look at it alongside expectations. A company’s profit growth doesn’t mean its stock price will necessarily rise. If the market was expecting more, even a “good result” may not be good enough. Surprises or disappointments from earnings reports often come from the gap between actual performance and expectations.
② A company’s earnings report may affect its entire sector. A large company increasing its AI investment can affect the market’s assessment of demand for industries such as chips and cloud services; the performance of its consumer business can also reflect consumers’ willingness to spend. So even if you don’t hold this company, its results may still affect your holdings.
③ After reviewing this quarter’s results, look at what comes next. Management’s outlook for future revenue, costs, and demand will affect how the market evaluates the company’s prospects. It’s worth watching whether a company that did well this quarter can keep it up next quarter.
My VIPs, before an earnings report comes out, would you adjust your positions first, or wait until after reading it to decide? 👀
#美股财报季
A company can turn a profit and still see its stock price fall; mediocre results may actually be welcomed by the market. So what should you really look at in an earnings report?
① To judge whether performance is good, look at it alongside expectations. A company’s profit growth doesn’t mean its stock price will necessarily rise. If the market was expecting more, even a “good result” may not be good enough. Surprises or disappointments from earnings reports often come from the gap between actual performance and expectations.
② A company’s earnings report may affect its entire sector. A large company increasing its AI investment can affect the market’s assessment of demand for industries such as chips and cloud services; the performance of its consumer business can also reflect consumers’ willingness to spend. So even if you don’t hold this company, its results may still affect your holdings.
③ After reviewing this quarter’s results, look at what comes next. Management’s outlook for future revenue, costs, and demand will affect how the market evaluates the company’s prospects. It’s worth watching whether a company that did well this quarter can keep it up next quarter.
My VIPs, before an earnings report comes out, would you adjust your positions first, or wait until after reading it to decide? 👀
#美股财报季
