I'm really confused. They beat on revs and earnings, Q4 comp sales are skyrocketing, and they've guided higher than consensus estimates for Q4...$100 million in cash and no debt..several upgrades today...and what do we get? A 7% drop? WTF. Can anyone explain this bizarre behavior? Thx.
People bought on the expectation of good earnings, many might have bought in the 24-26 dollar range.
This is an old Wall Street trick, larger buyers, possibly mutual funds, etc. buy at that time, then dump for a quick 15-25% gain. Retail amateurs hold the bag, thinking that "the stock has to go up, look at the earnings"
Probably 2 months or so from now, if the stock goes down to 25 or so, rinse and repeat. By that time the small investors have given up, and taken their lumps. Buy the rumor, sell the news, this will be even more pronounced if they have a good Christmas.
This is only my opinion. However, I have traded this stock since mid-2007, it simply does not trade on fundamentals. I agree that it seems bizarre, but if you have a better explanation, lay it on me.