Clearly I don’t understand markets. I thought share price usually went up on good results that beat expectations. So ASML released good results yesterday but the price went down yesterday and gapped down today! What am I missing
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This sort of thing’s why I never try to time earnings.
Looks like it’s to do with China uncertainty.
@Scrooge_McCodf will know more.
I have bought this morning and just considering it an unexpected buy opportunity
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Perhaps on the earnings call they eluded to some difficulties ahead?
I’ve read more since my original post. The results were good and beat some forecasts but the world economic situation has dented growth and they are scaling back from capital expenditure but nothing that couldn’t have been predicted give what everyone knows about economies around the world. There was particular reference about China but again it is well known. There are lots of forecasts and analysis saying that ASML and others are set for massive growth as new technologies become widespread.
The chart is extremely interesting (I do a lot of technical analysis of charts). The next couple of days will be very interesting in terms of the chart.
I think there is a short term battle between some reacting to just short term issues in terms of quarterly growth/revenues/capacity utilisation… and those investing for the long term. Personally I’m just considering this as a surprising buying opportunity but I’m very bullish about ASML for a whole variety of reasons so others may take a less bullish view. Trading tomorrow will be interesting
Seems like it was a good buying opportunity
At a guess I don’t know anything about the stock, but possibly guided weaker , already overvalued and it was priced for perfection, erm sentiment, the ceo said something stupid on the earnings call, to name a few off the top of my head. It happens.
I’ve “had a go” where good figures were expected, looking at the Tradeview chart, but my hit rate isn’t very good. Some really don’t react at all.
I think it’s best to buy the day before. If there’s a gap and a sharp rise you miss much of it; if nothing happens - bleh; if the price drops, it often comes back again. I’ll forget other than large companies too, the others can be a pain to sell.