It's now obvious the shorts were baited by the big boys
Did you just start following this stock yesterday, like apparently a lot of shorts have? Otherwise you would know that:
- Earnings impact this year is due to an acquisition, i.e. the company is growing, not shriveling up.
- Pega has continued to crush the top line quarter over quarter for the past few years, record revenues each time with upward revenue guidance on many of those earnings releases.
- 89 new employees added last quarter, when everyone else is laying people off.
- The company is in land grab mode, not "protecting earnings mode". Earnings don't matter when you're grabbing all the business that's ready to be had and further entrenching yourself as a leader in the space. You can fatten up the bottom line later after the lion has eaten all it wants.
Today is what happens when traders take a quick look at the bottom line and pull the trigger on a short.
I understand everything you are saying...really.... do you understand a P/E of 130? And the likelihood of a huge miss on earnings? In 3 years you are right...in two weeks though...I dunno...looks kinda tough for them to support a P/E of 130 thats all. Just saying...