The reaction depends on expectations and positioning.
| Concept | Explanation | |---|---| | Earnings result | Historical financial performance. | | Guidance | Management's future outlook. | | Estimate revision | Analysts change forecasts. | | Narrative shift | Interpretation of the company's prospects changes. | | Positioning effect | Price reaction depends partly on who already owned the view. |
Key idea: Markets respond to the difference between new information and prior expectations, not merely to whether the news sounds positive.