Why do stocks react so differently to similar earnings reports? For example, Zoom crushed their earnings and their stock skyrocketed while Rocket also crushed their earnings and immediately plummeted. Is it a matter of the expected earnings being priced in?
I guess my question is what are the indicators to look for because I don’t really see a difference between these 2 stocks/earnings. They are both benefiting from current situations which will be temporary. Once a vaccine is released zoom should fade and once interest rates increase or the housing market cools Rocket will suffer.
I previously thought things like price run up prior to earnings, expectations of earnings being priced in, etc would lead to a sell off. Is it really just a coin toss of how the market will react or is there a way have somewhat of an idea? I mean will DocuSign or Peleton pull a zoom or a Rocket?
Thanks in advance guys!
Submitted September 02, 2020 at 10:32PM by shu3k https://ift.tt/32PqvP3
