Hello, I was going to invest in a stock today before a earnings call that may be a beat tonight.

    I'm curious, I was told the stock goes up into earnings and then down. How fast is that process? Say on Thursday is it like a instant sell when the market opens or should I hold that stock until Thursday evening?

    Thank you!

    New to trading, what happens during company beat earnings call?
    byu/xluxeq ininvesting



    Posted by xluxeq

    4 Comments

    1. Beautiful-Click-6983 on

      Up on the rumor, down on the news. Put a limit order where you want to sell and choose after hours. That way you should get the price you’re looking for assuming (yea I said it) you’re correct with where the market is headed.

    2. Even a solid beat doesn’t guarantee the stock goes up. If everyone was already expecting a beat, that expectation gets priced in before the number drops, so the actual result just removes the uncertainty rather than adding anything new.

      The move usually happens fast, within minutes of the report or even in pre-market. What happens at open the next day depends a lot on guidance and tone of the call, not just the headline number.

      What’s your reason for being in it? That probably matters more than the earnings result itself.

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