Apple Beats Earnings Estimates and Stock Slides While Amazon Misses and Stock Goes Up, Why?

An interesting and simple read, for those interested in understanding the stock market and why certain stocks move the way they do. Simply said, here’s a quote from the article;

The moves in different directions for Amazon and Apple have been about expectations and guidance. Wall Street has higher expectations for Apple and ‘different’ expectations for Amazon. Wall Street wants Apple’s ‘gross margins’ to grow. They don’t expect Amazon’s ‘profits’ to grow. It sounds silly, but if Apple has reported lower profits and a huge gross margin increase the stock might have shot up. If Amazon had reported record profits today on decreasing margins, Wall Street might have panicked.

Read the full article written by Howard Lindzon, co-founder and CEO of StockTwits on Techcrunch.

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