Quote:
Originally Posted by jyl
...In most cases those estimates are based on company management's guidance (kc911 take note) When a company misses estimates, it means that something is going badly in the company's business and/or that management isn't telling investors the accurate facts about the business. Some investors extrapolate the bad news to future quarters and even future years, which brings down their valuation of the stock. That is the theory, anyway, the practice is a lot messier and more complicated and less rational.
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Thanks everyone! John, this is what prompted this thread. I was watching the "Apple news", and the media was widely reporting that Apple seemed to "always" under project their guidance numbers, and then consistently beat the street estimates. Why would they do this...in order to always look good when they "beat the street" or ?. I'm just curious, as I realize that I'm just picking up the crumbs that the "big boys" leave behind, and I guess that's why I don't pay much attention to the media. In fact, I'm ready for another AnnaNicoleParisMartianbaby saga to get their attention once again
