Let's look at TD Ameritrade, who reported yesterday and we got to see the stock price response today.
TD also beat on earnings (though not as much as E*Trade. One key difference is that TD Ameritrade is growing their top line (Revenue) year-over-year. Whereas E*Trade is shrinking year-over-year. E*Trade's revenue is down companred to the same quarter last year, which isn't a good sign.
TD Ameritrade sold off today. E*Trade really crushed earnings, so I'm certainly not going to predict that E*Trade will sell of tomorrow. E*Trade did comment that trading volume is down in July.
I wouldn't be surprised if tomorrow is not as positive as it looks in AH. But I guess we'll find out soon enough.
This looks like a Kitchen Sink quarter. I was surprised by the $142MM write off. Stock looks very cheap to me going forward. I think it fluctuates around here until after next quarters earnings (positive earnings with no special circumstances) and then will start it ascent to $20