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Why do stock prices sometimes fall right after a good earnings report? Visa just dropped about 2.3% despite good EPS and revenue growth
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Anonymous 8w

Many reasons. Two I can name is the earning report is already priced into the stock, so even if they hit expectations it’s just meh. Some tech is crushing earnings but investors are concerned with codex costs/other costs or concerns about making AI profitable.

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Anonymous 8w

also wondering

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Anonymous 8w

The other reason and the MAIN reason is guidance. EPS is only responsible for so much of the stock movement but the main driver is GUIDANCE. What management is expecting in the future

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Anonymous 8w

“Buy on the rumor, sell on the news” Each earnings report is only positive or negative relative to what the expectations were, not the actual numbers.

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Anonymous 8w

I know visa has some concerns with the EU making a EU continental rival to VISA, and Trump is trying to strongarm Brazil to make pix less… existent. Which is a state run version of visa. Both are either negative press or concerning to visa.

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Anonymous 8w

This is gonna sound crazy but sometimes they’re expected to beat the expectation 😭

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Anonymous 7w

Hint: All those expected eps estimates are bs.

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Anonymous 8w

The game is rigged for the professionals.

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Anonymous replying to -> #2 8w

Yeah that’s probably the main answer

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Anonymous replying to -> #3 8w

Probably yes. Sentiment and expectations are difficult.

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