Quote:
Originally Posted by BC69
The takeaway is the fact that markets prices already price future expectations. The first article could have read, Net Income up 1000000%, but if the market expected 10000002% then it doesn't matter. They already priced in the assumption. So being up doesn't matter unless its up above expectations.
Google last week got beat down because they might have had a good quarter, but didn't meet expectations. The problem there is GOOG is too cool for school and doesn't provide guidance to the street, so the "expectations" set in the market are generally not very well baked and you end up with big swings like last week when actual numbers are reported.
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I think you missed my point... and it's an investing 102 point...
There were two DISTINCT headlines... one quiet positive - one more negative.
My points are not about the actual facts as stated -- but more a general - "here's some things to think about" and if you see ONE article - it might pay you to investigate further rather than just relying on a headline.
Your points are valid - just not really related to what I was trying to get across. "Expectations" are very real and set the bar and for a trader - they can win or lose based on these expected or "whisper" numbers. We could argue all day about that. Personally I think they're ridiculous because they're nothing but "best guesses" = there is a high number by one analyst and there is a lower number by another, and everything in between. Personally -- I'd prefer to hear/read etc what the company says about it's business going forward vs. someones best guess.
Remember too that when I'm writing... I'm trying to speak to a very broad base of understanding. Many here are brand new to investing in anything. I'm writing to help them understand and perhaps learn from events etc that are new to them.
