This is one of the first ways I learned to make money investing. Even before I read all the mentors telling me the same, I thought it was strange that because the company didn’t meet the expectations of an educated guess, the market hammered their stock price. So while these companies generated $50-$70 billion in revenue, people are going to punish them because they missed some crystal ball analyst/management expectation. Blows my mind. But creates opportunities for long term folks like myself to lower their price point.
Companies like these only drop 2-3%; that’s not the opportunities I’m talking about. Sometimes it’s 20%+, that’s when I take the low hanging fruit.