Cloudflare beat expectations across the board and was up more than 20% premarket, but by Friday’s close it was up just +9.91%—the opening price turned out to be the high of the day.
The numbers: Q3 revenue was $782.5 million, up 39% year over year, and EPS was $0.38—both well above expectations. Q4 revenue guidance of $845–846M also topped the market’s $798M estimate.
But on Friday, it peaked at $286.97 right at the open, then slid all the way to a $268.75 close, with an intraday low of $265. Trading volume was 9.41 million shares, more than twice the usual level.
Don’t forget: just the day before, it had fallen 8.28% amid a tech-stock sell-off, closing at $244.51.
My take: Nothing wrong with the earnings—the issue is the price. This was a “good news already priced in” gap-up followed by a sell-off, not a trend reversal. It’s still below the 50-day moving average at $319 and well off its 52-week high of $370.
What I’m doing: watching, not chasing. A move above $286.97 would make me consider a rebound; a break below $265 would invalidate that rebound thesis.
When a stock beats earnings expectations but gaps up and then sells off, do you think it’s a shakeout or a top?
$NET $QQQ
#美股 #Earnings
The numbers: Q3 revenue was $782.5 million, up 39% year over year, and EPS was $0.38—both well above expectations. Q4 revenue guidance of $845–846M also topped the market’s $798M estimate.
But on Friday, it peaked at $286.97 right at the open, then slid all the way to a $268.75 close, with an intraday low of $265. Trading volume was 9.41 million shares, more than twice the usual level.
Don’t forget: just the day before, it had fallen 8.28% amid a tech-stock sell-off, closing at $244.51.
My take: Nothing wrong with the earnings—the issue is the price. This was a “good news already priced in” gap-up followed by a sell-off, not a trend reversal. It’s still below the 50-day moving average at $319 and well off its 52-week high of $370.
What I’m doing: watching, not chasing. A move above $286.97 would make me consider a rebound; a break below $265 would invalidate that rebound thesis.
When a stock beats earnings expectations but gaps up and then sells off, do you think it’s a shakeout or a top?
$NET $QQQ
#美股 #Earnings
