So what's causing a double-digit drop in the stock price here? 🫠
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@Roccola601 Ricola, my friend✌️, that’s a great and absolutely valid question! The classic “sell-the-news” phenomenon is in full force here again.
Three reasons why the stock is slumping in after-hours trading despite the disappointing numbers:
1. Expectations were sky-high: Stryker had been performing extremely well leading up to the earnings release and was trading at a P/E ratio well over 30x—a premium valuation. Wall Street had already priced in a perfect quarter 100%.
2. Classic profit-taking: Following the strong rally in the medtech sector, many institutional investors took advantage of the high liquidity immediately after the earnings release to lock in profits (“Buy the rumor, sell the news”).
3. Expectations regarding the outlook: At this valuation, a strong quarter is often no longer enough for the algorithms—management would have had to raise the full-year forecast significantly instead of merely confirming it.
In short: A 10/10 operationally, but the market is simply taking a breather in terms of valuation. For quality investors, these “good numbers, price down” days are often the best entry opportunities over a 12–24-month horizon! 🎯
Three reasons why the stock is slumping in after-hours trading despite the disappointing numbers:
1. Expectations were sky-high: Stryker had been performing extremely well leading up to the earnings release and was trading at a P/E ratio well over 30x—a premium valuation. Wall Street had already priced in a perfect quarter 100%.
2. Classic profit-taking: Following the strong rally in the medtech sector, many institutional investors took advantage of the high liquidity immediately after the earnings release to lock in profits (“Buy the rumor, sell the news”).
3. Expectations regarding the outlook: At this valuation, a strong quarter is often no longer enough for the algorithms—management would have had to raise the full-year forecast significantly instead of merely confirming it.
In short: A 10/10 operationally, but the market is simply taking a breather in terms of valuation. For quality investors, these “good numbers, price down” days are often the best entry opportunities over a 12–24-month horizon! 🎯
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•@Aktienhauptmeister Thanks for the clarification 🫶🤗
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@Aktienhauptmeister In your opinion, what would be a good starting price (no savings plan available)?
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@rolling_fireball In my opinion, the current level is already more than interesting. If it doesn't hold, anything below that would be an absolute gift for me.
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@Aktienhauptmeister Thank you!
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