Yeah Iām not sure this is the reason for it, though.
Itās annoying and makes no sense, I agree, but I was putting it down to profit takers and the sheer volume of retail investors in the market right now that are messing up normal behaviour by playing ER as catalysts for a payday rather than a step up of a LT investment.
Even the active FMs are doing it. Ark have trimmed PINS, AAPL, ILMN, ROKU, DOYU, FB, TEAM and XLNX in the last two days.
The market works on the future, as mentioned the reason these stocks surged since March was the anticipation of the last 2 Qās earnings. Only blow out earnings far above revised expectations will result in immediate more uplift.
Plenty of people, retail and institutions will use the liquidity created by earnings to liquidate their positions. People sell for 100 different reasons, on multiple different time frames.
Anyone who buys just before earnings is gambling in my mind not trading or investing.
Latest victim of this stupid market sentiment is Datadog.
Down 10 Percent after beating EPS by 433%
really. what the F?
The market is very very volatile atm. on the back of the vaccine announcement all the tech stocks were sold and crashed. imagine if they found the vaccine doesnāt protect for very long etc,
That 433% equates to 4 cent though. Iām interested in the 7% they beat revenue expectations which is several million. They shouldnāt be down at all. I reckon a good time to buy in is today.
Well this stock was on a bull run so not really surprising
Every valuation metric for Datadog shows itās overpriced. What it says to me is that the market sentiment leading to itās all time high in prior months was crazy not the reaction to itās earnings.
how about the rule of 40? looks pretty good to meā¦
edit; here is the calculation I found:
Rule of 40 measures a companyās combined growth and profit margin. Many venture capital and growth equity investors believe this ratio should exceed 40%, especially for software companies.
Rule of 40 = FCF Margin + Revenue Growth
Applying this formula, Rule of 40 for Datadog is calculated below:
Levered Free Cash Flow Margin [ 10.9% ]
(+) Revenue Growth [ 82.1% ]
(=) FCF Yield [ 93.0% ]
edit2: this calculation could be completely wrong and outdated, found it on finbox website, maybe some can check it?
I find the sentirment still confusing.
Here you have Cisco reporting a loss, but not as bad as estimated (still a loss) and the only reason it wasnāt as bad as estimated was because of covid and people working from home. Stock rises 7 percent.
Now thinking back to why some other stocks tanked, it was because they did really well, but investors wondered if they could keep the momentum post covid. Fair enoughā¦ but 1, covid aināt going anywhere for the foreseeable future. 2, why is the reaction so different?
Cisco reports high loss, but itās not as bad . Attribute to covid. Which means post covid they will get shafted. Stocks up
Others beat revenue, mainly cos of covid, so post covid, they wonāt go under, just not beat estimates. Worse case scenario. Stocks go down
Wtf do these investors want?
Apples to Oranges really.
You compare likes of ddog who run up 100%+ vs CSCO who has been down mostly since covid.
bro why it would feel better that you are Ā£2k down. Believe me it feels awful but you know, if you do sensible investments youāll be Ā£20k + 
I have also made mistakes but I think my best mistake is GNUS and one analyst give rating $6 - $8. I bought around 3k shares on $3 average price. So yeah thatās part of the game 
GNUS is doing very good investments and in future I see a very good EPS. Once you trust something then it is sale for you when the price is down. so probably it is time you put in some more money to average your losses, but only if you believe on the companies and not just playing it like a game. sorry if you find it harsh
Find what harsh? Iāve lost what you are saying. 
All investments are a game, itās all about risk and reward. You donāt have to be in it long term itās all about DD, and entry/exit.
GNUS is a pure P&D stock that suffered from a very long bleed out. It was a good play at the time but very high risk.
Iāve zero interest and faith in the stock long term, however their offer has improved steadily over the last few months. I was only meant to be there for the swing and left holding a bag.
I made about a grand profit on GNUS back in the pump days. I left 1280 shares in to see where it would go. I definitely got caught in it being pulled back to $1, when I had it $2 on charts.
In hindsight should I have taken those out too, definitely. But Iām fine with it, itās a learning mistake, I could average it down but happy for it to tick along.
Itās likely to be over 2 again so Iām happy not to seal in any loss by selling.
What a chart 
Poss earnings on the Monday or the 20th 
No I am not saying that you lost anything. I mean sometimes people can be triggered by anything :-p so yeah 
GNUS I believe in their team and I donāt do day trading, not for me because I have earned/lost a lot and at the end of the day it is more hard work than when I make. GNUS will definitely be a thing, not now not tomorrow but in 3 years.
Oh I see yeah got to take emotion out of it. Itās a paper loss, I donāt need that cash tied up in it. Not much I can do to affect it, maybe tell everyone to download the app and rate five star.
I actually think it all feels a bit weird, the cartoons are something you would expect to see 20 years ago done by someone for a school project.
Even weirder with the likes of Arnie and Shaq on board.
If it gets near break even Iāll be leaving.
a second pump. Who knows, maybe the earnings might spark new interest.
A lot of the tutes that got on board are topping up so if they are then they must know something. BlackRock really getting stuck in.
How is it apples and oranges?
Almost every stock right now will be impacted by covid.
Itās growth or its demise.
What Iām trying to say is, why would investors invest in Cisco and bring it up 7 percent at a rubbish earning call but drop datadog at 433 percent hike.
Iām confused because Iām probably simplifying things too much.
Datadog is now getting competition etc which might be the reasons itās slumping, perhaps a bad example.
How about ovetstock
Overstock did great, but the main reason for the dump was apparently because Investors felt they cannot sustain Thier growth. Because they attributed it to covid times. Fair enough
But why would they take Thier hats off at Cisco, who also attributed Thier gains to covid? Or Pinterest or Snapchat? Itās all covid related!
Feel for ya bro.
Canāt be easy seeing a big number in red
Cisco is a long term successful stock as opposed to Datadog which isnāt. The two are nothing alike. So Datadog may well be massively overvalued despite beating earnings predictions and market may well value down as a result.
Right. Fair enough.
So letās wait for the earning beat to correct? Lol
Most of the popular stocks are over valued. Why wait for the earning beat to drop the hammer on it?
Meh
As I said from the very beginning. My gripe is that itās becoming increasingly hard to invest based on facts. Itās becoming a lottery now. Yes I understand stocks go up and down. How are you supposed to invest in a lottery system?
That is where risk/reward ratio comes to play, why prudent investor wants to purchase share with margin of safety vs overpaying for hopes on ācertainā future growth. 
Thus you have ddog, where you have a bigger risk and hope it lives the expectations on future growth. Or you had CSCO with 35-37$, which is a bargain, not without risks, but at least with margin of safety, due to lower price paid.
But anyway, seeing T212 hotlist, my views are minority here. Common t212 user has Tesla, Apple etc.
I have 3 stocks out of t212 top 100 in my portfolio.(BABA,JNJ,INTC)
Nice to hear someone is still backing baba, Iāve hovered over the sell button for the last two weeks!
