Now you know who moves the market up and down but the question is why?
Here are the two reasons why share prices go up and down the most.
- A company reports an increasing EPS on an earnings statement.
- A company reports that they beat their earnings estimate.
If those two criteria are met every quarter, in most cases the share price will increase.
On the flip side…
If those two criteria are not met every quarter, in most cases the share price will decrease.
This is why those two criteria are outlined within “The 7.”