What makes a company increase in price after they beat earnings?
Stocks’ prices are affected by many factors that cannot be controlled all at once, mainly we can think about the most influential ones as a group of how investors feel about that certain stock. Earnings reports must be published by publicly traded companies in the U.S on a quarterly and on an annual basis. These reports are official financial documents issued by the company itself that shows expenses, earnings and overall profit in a certain period. They provide a periodic update of a company’s financial statement along with an income statement, cash flow statement and balance sheet. Investors can use a company’s earnings report as an indicator of performance and financial position of the company, however the report usually gives an overly positive idea of the financial situation and therefore…
