Under normal circumstances, the company's loss or profit decline will not happen suddenly. There are various signs in front of it, such as the sharp decline in performance for several consecutive quarters, the serious deterioration of asset quality, the emergence of a large number of risky accounts receivable, and the possibility of a large number of provision for inventory depreciation.
Does performance affect stocks?
Profitability has an impact on stocks, because the performance has been greatly improved, which is also good news. Generally speaking, it is beneficial to the stock price in the short term and will stimulate the stock price growth. However, in practice, we also need to consider the stock price trend and market impact before the results are announced. If the stock price has accelerated before the results are announced, then sudden death may occur after the results are announced, and the stock price is very likely to rise and fall on the same day. If the stock price does not rise significantly before the performance is released, there will probably be some short-term growth, but it is also short-term. Don't expect too much. Besides, if things go well, the stock price may strengthen. If the market is not so good, the stock price will easily fall.