How Does a Stock Rise/Fall 20% in a Day?

How Are Stocks Valued?

Before we look into stocks getting instantly crushed, we need to determine how stocks are valued.

What Changed Last Week?

Let’s think about Facebook, Amazon, and Apple. Did something change last week? Why the big swings?

Quarterly Updates

All three companies reported their 2021 Quarter 4 earnings in the past two weeks. This is when they tell the stock market, “Here’s how we did for the past 90 days, and here’s our latest prediction of the near future.”

But It’s Not Always 100% Rational

Sudden stock price changes are often grounded in rational thinking. But irrational emotions are at play too.

Falling Off for Today

Stocks suddenly rise or fall (or both) in reaction to quarterly/annual earnings reports.



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Jesse Cramer

Jesse Cramer

Jesse Cramer, Founder @ The Best Interest