Apple's daily change, earnings, and growth, live
AAPL — Today's Change, Trailing EPS, Revenue Growth. Open AAPL on the Ledge to see current values.
Four drivers that move prices
| Driver | Effect on Price | Example |
|---|---|---|
| Earnings reports | Beat expectations = up, miss = down | Company reports $2 EPS vs $1.50 expected (EPS — earnings per share, net income divided by shares outstanding — is the number a 'beat' or 'miss' is measured against) |
| Interest rates | Rates up = stocks down (usually — higher rates make future profits worth less today and raise borrowing costs) | Fed raises rates, borrowing costs increase |
| Industry news | Sector-wide moves | New regulation affects all banks |
| Investor sentiment | Fear sells, greed buys | Market panic during a crisis |
Short-term emotion versus long-term earnings
In the short term, prices are driven by emotion and news. In the long term, prices follow earnings growth. That distinction separates investing from trading.
See how headlines move a price
Look up any ticker and check the News section. Can you see how recent headlines might have moved the price?
Predict the reaction to an earnings beat
A company beats earnings expectations by 20%. What is the most likely short-term reaction?
Price versus value: where opportunity lives
Check your understanding
Sit with the ideas.
A company reports earnings of $2.00 per share when analysts expected $1.80. The stock drops 5% the next day. What is the most likely explanation?
Why: