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Tue Jan 29, 2013, 04:58 PM

Amazon Misses Earnings, Stock Soars. Apple has biggest earnings of any company in history...

...and their stock drops.

Wall Street is full of morons.



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Reply Amazon Misses Earnings, Stock Soars. Apple has biggest earnings of any company in history... (Original post)
onehandle Jan 2013 OP
LondonReign2 Jan 2013 #1

Response to onehandle (Original post)

Tue Jan 29, 2013, 05:30 PM

1. Um...no

Stocks are priced on expectations...if you noticed, AMZN had a pretty big fall during the day based on an expectation of por quarterly results. When the numbers came out with margins expanding, the stock bounced back after hours.

The value of a company's stock is derived by the expected performance going forward. Pricing it solely on the past quarter's performce is akin to driving your car backwards on the highway using the rear view mirror -- you'll crash pretty frequently.

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