Stocks crash on bad earnings reports because the future attractiveness of the stock has diminished. This reduces the likelihood that a future investor will buy your hot potato above the unit price they bought in.
Stocks are fundamentally divorced from economic reality EXCEPT when a company ceases trading and several other rare administrative actions.
Predicting future hype is all that matters. Or time spent fractionally invested in all broader casino hype trains, e.g. VTI
Why in the motherfuck would it be a bad earnings report when, according to this conspiracy theory, gross margins on food would have gone from 1% to 43%? Conservatively that would lead to a ten thousand percent increase in the stock price. Yet instead the stocks of Metro AG and SPAR Group, Inc. are down 25 or more percent YTD.
Stocks are fundamentally divorced from economic reality EXCEPT when a company ceases trading and several other rare administrative actions.
Predicting future hype is all that matters. Or time spent fractionally invested in all broader casino hype trains, e.g. VTI