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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BTW -- Google is another one of those "priced for perfection" stocks I've discussed. I don't care if it's Google -- or pick any other name... My point and writing would be about investing in these "kinds" of stocks where all the planets better be aligned PERFECTLY - because if not - they get killed. That may or may not be a buying opportunity. That depends on a persons view and risk tolerance etc. My Investing 102 point would always be about UNDERSTANDING these kinds of stocks before you invest in them and what and how the market will operate. And understanding the terms such as "priced for perfection" which is used quite often.