Oh my, new pattern. Radical. Different. When you beat the estimates and raise them by more than, say, 40%, the machines go off and a stock goes higher no matter what.
That's right, there is a hurdle rate that when exceeded triggers buying even if the stock is already up gigantically.
It's never been like this even in the fabled 1999 blow up many want to say we are re-experiencing. No matter what the current price to earnings multiple or enterprise to sales or even out year sales analysis, that sucker's going up.
Case in point, Nvidia (NVDA) . I cannot believe how high the stock was ahead of the print. It had nary a day where it didn't go higher. But it just didn't matter, that's how sizable the beat was, 13% versus earnings. Not only that it was done via the data center which is in total growth mode.
Who else got this uber-hyping.
And, Canopy (CGC) , yes Canopy, which reported $124 million sales - in Canadian - versus $105 million.
This is the stat to look for. This is the new game.