Why do positive corporate earnings lead to stock price declines

jkb92@jkb92

3Wk

Why is a banana curved?

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Endurance Life@MozartsGeist

3Wk

@jkb92 Because she wants to grow toward the sun?

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Dividendenopi👴@Dividendenopi

3Wk

@jkb92 If it were straight, it wouldn't fit in the bowl

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Klein-Anleger@Klein-Anleger

3Wk

@jkb92 because I wouldn't buy a straight banana, and because Apple has already designed the banana emoji to be round 🍌

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Endurance Life@MozartsGeist

3Wk

@Klein-Anleger Speaking of Apple, when will we head north again?

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Klein-Anleger@Klein-Anleger

3Wk

@MozartsGeist They're almost at their all-time high—I don't think they're a bargain right now, but they're not overpriced either…

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Endurance Life@MozartsGeist

3Wk

Just under 10% down over the last 7 days

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Ichbinak63@Ichbinak63

3Wk

@jkb92 because she had been avoiding the GDR for years.

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jkb92@jkb92

3Wk

@MozartsGeist "to the sun" haha—that analogy would probably go over best with Novo shareholders

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Seventrader@7Trader

3Wk

@jkb92 because nobody went into the jungle and straightened them out 😆

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Endurance Life@MozartsGeist

3Wk

@jkb92 Tomorrow, the sun ☀️ might just show its best side.

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EugeneKrabs@Danicx13

3Wk

I don't get it anymore either. The stock just still can't seem to get going. Every brief rebound gets sold off, and then it goes back down. Positive news doesn't make a difference anymore.
At some point, a stock has to turn around.
I’m holding on because I’m already deep in the red anyway 😂—I’ll probably buy more at some point.
It’s bound to turn around eventually.

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Markus@MarkusF

3Wk

@Danicx13 It's a company based in the EU.
Actually, that's pretty normal these days.

And it also has a lot of "investors" who bought in when it was massively undervalued and are cashing out their 20–30% profits in less than 6 months.

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Get_Rich_or_Die_Tryin@Get_Rich_or_Die_Tryin

3Wk

Here is your explanation:

Here's something that might interest you: - https://de.investing.com/news/earnings/novo-nordisk-aktie-fallt-enttauschende-wegovyzahlen-und-studienruckschlag-uberschatten-prognoseerhohung-3599759

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Endurance Life@MozartsGeist

3Wk

@Get_Rich_or_Die_Tryin Thank you for forwarding this.

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BoldTake@BoldTake

3Wk

The problem:
You’ve developed a drug for a HUGE market that isn’t selling in line with its market potential. Eli Lilli shows that the demand is there.

Patent cliff: There isn’t much potential for a new sales boom right now, and current patents are expiring.

The stock needs a new story…

This isn’t meant to be hate! I find the company itself exciting and the price is tempting… but you run the risk of the stock treading water for a long time here.

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Dirk aus Stade@dirko68

3Wk

It's a shame that Novo is mentioned specifically here, when the question is surely meant to be more general. Unfortunately, it’s becoming increasingly common for certain expectations to be heavily factored into the stock price beforehand, and then—even when those expectations aren’t quite met—the stock price takes a significant hit despite solid earnings figures.

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Yoshika 🦋.@Yoshika

3Wk

However, the only positive figure is the adjusted operating profit before the 6.3 billion in write-downs on the pipeline.
And even the revised forecast for 2026, on an adjusted basis, still shows revenue and operating profit in the range of 0 to -6% compared with 2025.

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Yoshika 🦋.@Yoshika

3Wk

@Yoshika
And depreciation specifically means that part of the pipeline is worth less than what’s on the books. And the next one has already been announced for Q3, following the ZEUS flop

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Why do positive corporate earnings lead to stock price declines?