Beating Expectations, Losing Money: What Retail Investors Miss About Earnings Season
A company reports better-than-expected earnings, and its stock promptly falls ten percent. For retail investors, this scenario feels like a betrayal—but it is actually a well-documented pattern with identifiable causes. Understanding how earnings beats are constructed, and why forward guidance carries far more weight than headline numbers, can help you avoid one of the most costly traps in active investing.