It was priced in.
That’s always the answer then the market does something irrational, and the market is always doing irrational stuff.
Because the stock market is just gambling for trust fund kids
Because stock price is based on expectations of the future, not day-to-day performance.
For example, the price last month might have been because investors predicted that their operating profit growth would be 775%. If it is now “only” 557%, then they lower the price to match more accurate predictions.
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That is simply not true, stock prices are all about the profits. Just not only the current profits but also expected future profits.
But regarding the stock price of SK Hynix, I recently heard an analyst claim that to make a full return on current stock prices for some RAM companies, they’d have to continue with current record profits for a 1000 years!!
People just don’t always know what they are doing, and some buy wildly overpriced stock, because their delusions make them think the stock can magically only go up.
Tesla has been wildly overpriced by a factor of 10 for years. Because enough people believed the FSD/robotaxi/AI bullshit Musk continues to promise.
So even when the stock market overwhelmingly believe huge profits will come, it may never happen. And when the market realize that there will never be profits to justify the stock prize, the stock will plummet.
Supply and demand my ass!! If your profits GREW that much all the price gouging was absolutely unnecessary!
The link doesn’t go to the article, it goes to EBC’s home page.
Odd, it works for me. But here’s an archive link just in case: https://web.archive.org/web/20260729114118/https://www.ebc.com/forex/sk-hynix-stock-fall-q2-2026-earnings
