7 Reasons Why A Stock Price Falls After Earnings

Let’s get into it! 👇

If you are a publicly traded company, you must post your earnings four times a year (each quarter.) 📆

Earnings reports are required so investors can examine a company's health over a specific time period and analyze whether it is meeting its annual projections.

Before these earnings are available to the public, "Wall Street analysts" estimate how companies expect to perform. If a company beats these analysts' expectations ("earnings beat"), this usually sends the stock up. 📈

On the other hand, if a company fails to meet analyst estimates, a drop in the stock price usually follows.

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