>good news >stock drops Why does this happen?

I gotta say, this is the kind of muslim caliphate king I would support for supreme leader.

HAHAHAHAHA is that really the king?
You know, I always heard he was rich from the hash trade.

May be that big bucks waiting for a strong buying side see an ocasion to liquidate their vast amounts of shares.

>>1812655
>Why does this happen?
Good news was priced in. If the news wasn't as good as expected, the price drops.

If investors predict profit growth of 25%, but the company only has 20% profit growth, the stock price will drop. It's still good news, but it's not as good as investors were expecting.

It's like how the Wikileaks Podesta emails didn't hurt Clinton that much because the biggest bombshells were things we all pretty much expected from her (two-faced, in bed with the media, corporate whore), while her 9/11 collapse and the FBI investigation letter really hurt her because they were unexpected.

>>1812655
basically this
>>1812792

sometimes its obvious. bag holders take every opportunity to get out with less loss, or if a firm thinks liquidating their large position would have too much of an impact on the price. these people will take advantage of buying power on good news

>>1812655
Sometimes it is good historical results being offset by a bad forecast, i.e. "we beat earnings expectations by 5% last year but we're lowering our guidance by 10% for next quarter." Since, theoretically at least, stock price is based on future earnings expectations, the lower outlook is more significant to investors than the fact that they beat expectations last quarter.

>>1812655

Usually many investors had a heads up on the good news and bought in before hand, at the height of the rise (usually when the actual good news is released) those same investors sell for a profit.

Generally in stocks, by the time the good news hits it's way too late for you to buy in.