Analysis expects Better Days Inc to have negative earnings W

Analysis expects Better Days, Inc. to have negative earnings. When earnings are announced, the actual earnings are slightly better than anticipated but still negative. As far as the firm\'s stock price goes, the news ???? is likely to have a/an

A. immediate and slightly negative effect. B. slow and slightly negative effect. C. immediate and slightly positive effect. D. immediate and significantly negative effect.

Solution

The market is expecting a bad result and when the estimated results are declared market is going to to have an immediate negative impact but the major correction has already happened by then

The moment a better result than estimated resukts are published then stock is expected to have an imemdiate positive impact on share price due to excessive pessimism