Theoretically, a stock's fair value is the sum of their current and (discounted) future earnings.
> Many times stocks perform well at earnings and shareholders still put on a fit and downvote its price.
Price fluctuations at earnings calls are due to relative earnings expectations, not the absolute value of the earnings itself. Such stock revaluation is due to investors suddenly having more accurate earnings figures to price into their valuation.
> Conversely, they often upvote its price based on some PR hype instead of actual earnings.
"PR hype" pumps represent increased market expectations of actual future earnings, however tenuous those expectations may be.
> Many times stocks perform well at earnings and shareholders still put on a fit and downvote its price.
Price fluctuations at earnings calls are due to relative earnings expectations, not the absolute value of the earnings itself. Such stock revaluation is due to investors suddenly having more accurate earnings figures to price into their valuation.
> Conversely, they often upvote its price based on some PR hype instead of actual earnings.
"PR hype" pumps represent increased market expectations of actual future earnings, however tenuous those expectations may be.