While I agree that VEEV could come back after this overreaction, I highly doubt it will happen within today, or even next week. It will take time and more importantly a total capitulation before the cooler heads prevail.
A 1-day swing from -20% to the green is highly unlikely, as much as we would like it.
Veeva costs about 120 times its trailing earnings of $33 million, but "only" 68 times trailing free cash flow of $59 million. Those valuations seem a bit high.
...to you all idiots. I should have sold at the jump before earnings but no you guys convinced me that this was going to shoot higher! You idiots don't know jack $hit.
It could be shorts exiting their positions ahead of the earnings report. It's not itself that unusual, but the magnitude is a bit surprising.
The crash in WTI is an opportunity for rapid consolidation. The winners will be those companies that have solid financials and management.
If trading earnings were a simple matter of plugging in numbers in a valuation formula, you wouldn't get the volatility that you see the day after the report.
It's about gauging the market sentiment and obeying it, whether it is reasonable or not. Because it's the sheer force of the hive mind that moves markets, nothing else. Sometimes it's right, sometimes not.
It's all a giant game of leap frog, man. Everyone wants to maximize their number of leaps but nobody wants to be the last guy bending over. ;)