Why Stock Price Falls After Good Quarterly Results? 

I've always wondered - why does the price of some stocks fall after the company has posted excellent quarterly results? I mean, the news headline would say something like 50% growth in profits and when one looks at the stock price, it would be down by 3-4%. In this short video, I give you four reasons why share prices fall even after the company posts improved financial results. These are:
1. Quarterly results did not meet market expectations
2. Managements guidance for the next quarter or next few quarters was weak
3. Profit booking happened and traders who bought in anticipation of a pice hike (which happened in the run-up to the results) sold their shares
4. Irregularities in the financials e.g. the company's debt might have gone up or it might have done some unnecessary acquisition (like when Infosys acquired Panaya or Aurobindo Pharma announced its intention of acquiring Cronus Pharma Specialities India etc)
Other than these, there can be a few more reasons like some major shareholder parring down some of his/her stake in the company or a research analyst/brokerage giving a negative report for the company etc.
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Disclaimer: I am not a SEBI registered investment advisor or research analyst. The content posted on this platform is purely for educational purposes and none of it constitutes investing or trading advice. Viewers should do their own research and diligence before investing or acting on the information presented