Earnings Don't Necessarily Determine Stock Prices
Earnings estimates cuts are at an all time high for the first quarter, but that isn't hurting stocks.
It would seem that if a company has an earnings disappointment then the stock should go down, but that isn't necessarily what happens. Robbert van Batenburg of Newedge points out stocks like First Solar has seen its estimates drop 32%, but the stock has risen. E-Trade is the flip side of that coin. E-Trade is down 4% even though the earnings estimates are up 32%. Batenburg tells investors to be aware of the outside forces and not just look at the earnings.
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