$Advanced Micro Devices(AMD)$  I've never really understood why when a company beats estimates, we say the company did a good job and vice versa. When a weather forecaster correctly predicts rain, we dont say good job to Earth for making it rain, we say good job to the forecaster for accurately forecasting the weather. On this note, why then are people bearish on a company if its revenue did not meet estimates? Shouldn't it be based on the company's current and future performance?

# AMD Plunge: Chip Stocks Start to Pull Back?

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  • Azerone.Kee
    ·2024-02-05
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    because stock trading is based on the expecting future value of the stock. when the opinion leaders say good or bad for a company, the followers will react for it. so happened when the fact is not same as the expectation, the followers will take "corrective actions" for it.
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    • Azerone.KeeReplying todestanhw
      Based on the historical data, and the outlook for the future, estimate the value of the stock in the future.
      If people expect the business of a company will be blooming, people will start buying its stock, and its price will grow high.
      And vice versa.
      See the PE value of your stock in hand.
      2024-02-06
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    • destanhw
      Are analysts' estimates based on future value of the stock? or are they just the analysts assessment of the company's expected performance with the previous quarter? my understanding is the latter.
      2024-02-05
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  • JL1Apr
    ·2024-02-05
    It was just an excuse for Wall Street to push up or sell down.
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  • cheezzy
    ·2024-02-05
    Agree! Numbers ≠ Future.
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