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Why do stocks go up or down after earnings?

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Zane Blick

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4y ago

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Q: Why do stocks go up or down after earnings?
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How does the stock market raise and lower?

The price of stocks is determined by the Demand and Supply theory. When there is a heavy demand for stocks and the supply is less then the prices go up. When there is a heavy supply of stocks and there is less demand then the prices go down. When the price of stocks goes up, the market goes up and when the price of stocks go down the market goes down.


How does value of stocks come down?

The price of stocks is determined by the Demand and Supply theory. When there is a heavy demand for stocks and the supply is less then the prices go up. When there is a heavy supply of stocks and there is less demand then the prices go down.


Why do stocks in either market go up or down?

because they want to


Is gold stocks up or down?

Gold stocks are down, but now would be a great time to buy because the stocks are so cheap


What happens when stock prices are down?

When stock prices are down, people with lots of money buy up the low priced stocks. They do so in anticipation that the stocks will eventually go back up and they will be able to sell at a nice profit.


Why do the stocks go up and down?

they go up and down, because the stock can never stay in the same number for a long time, so if the stock is going up, it's doing great. but if it's going down, it doing bad


Why do stocks go up or down in price?

Stock prices go up or down based on the Demand - Supply theory. Whenever the demand for a stock is more than its supply its prices go up Whenever the supply of a stuck is more than its demand its prices go down


What happens to company's stock price when it announces investment plans?

Their stocks will either go up or down. It is not that hard.


What is a Cumulative average learning rate?

This is the rate that you earn over time. It can go up and down but it is the average of all the changes in earnings.


What are the worst stocks to invest in?

Anything priced under $5 per share, which is called a penny stock. (Used to be, penny stocks were under $1 per share, but everything gets more expensive.) Penny stocks are more likely to go down in price than to go up, so they are the worst stocks to invest in.


In case in global recession how do stocks of companies in various sectors perform?

gold up, stocks down


Why do stocks in these markets go up or down?

It's ALL about earnings -- how much money the company makes (or doesn't make) -- good old fashioned profits -- the bottom line. This is a true answer that is very easy to lose sight of when Internet stocks are selling for hundreds of times the earnings that they don't even have, yet, and in-the-red IPOs that end in ".com" rise to higher market capitalizations during their first day of trading than companies that actually make lots of money and have been doing so for years.You see, another answer, but one that is "less true," is that stocks go up because of hype. Hype, momentum, the greater fool theory -- all ways to describe the seemingly irrational way some stocks behave. But when you look closely, you will see that the hype is always about earnings.I said this answer was "less true" because although stocks do go up because of hype and momentum, they also go back down eventually unless the earnings are there to sustain them. When hype-based momentum turns around, it can get ugly.One of the few indisputable facts of investing is that over the long term, stock prices rise because company earnings rise, or vice versa. But the fact that stocks rise because of earnings is only long-term truth. Prices don't track earnings that closely over short time periods, and even long-term, the relationship is not necessarily precise. There's a lot of room for hype.At any given point in time, stock prices within some earnings-dictated range are more influenced by the market's perception of what earnings will be. Not what earnings are, but what they will be. Sometimes those perceptions are realistic, sometimes they are wildly unrealistic. But always the perceptions are about earnings.One of Wall Street's truisms is that if you know the price of a stock will go to $50 tomorrow, it will go to $50 today. Think about it. If you know a stock is going up, the natural reaction is to buy it. If "everyone" knows it 's going up, and, therefore, "everyone" starts buying, what happens? Increased demand plus limited supply equals increased price. As the price approaches what "everyone" thinks it will be tomorrow, demand slows to equal supply, and the price levels off.