Tonytifao From Brazil, joined Mar 2005, 1062 posts, RR: 0 Posted (8 years 5 months 4 weeks 1 day 15 hours ago) and read 3232 times:
Looking at DAL stock, it's down more than 5.5% just today and more than 12% in the last 5 days. It has reached it's 52 week low. Anything going on with Delta that is not known? It just seems like a pretty steep drop as they are doing fairly well lately.
Markets don't only look at the company's financials for valuation. Other factors including competition, price of fuel, growth opportunities, economy, growth of travelers, government regulations, etc. This why prices move everyday and not when company information is released.
RFields5421 From United States of America, joined Jul 2007, 7804 posts, RR: 32
Reply 3, posted (8 years 5 months 4 weeks 1 day 12 hours ago) and read 2864 times:
Everybody is up or down a lot lately.
It has nothing to do with the individual companies and is mostly about the way the stock market is structured to not be concerned with the company's actual operations and profit.
The company I work for is a multi-billion dollar world-wide cash generation machine. We take in billions of dollars of red, green, yellow and blue folding money over the counter every year. We make a lot of money and could be debt free if we wanted.
But Wall Street doesn't care about how much money we make.
They only care about our ability to "grow" our same store sales numbers and that our predictions are close to accurate.
A stock price can fall just as far and as quickly if the company reports better than expected earnings and profit.
In fact unexpected bad news is usually less negative for the stock price than unexpected good news.