What is the effect on the stock price of a company that announces it earned...
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What is the effect on the stock price of a company that announces it earned higher-than-expected quarterly profits? The company will most likely not see a shift in value. The effect depends on what generated the profits and how analysts forecast this information. The stock price will likely go up because the announcement suggests that the company is undervalued The stock price will likely go down because analysts do not like unexpected surprises from company financial reporting
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