The Lesson From Facebook Stock: Stay Alert For Quarterly Earnings Growth Deceleration
2018-07-27 16:52:03 View:
The Lesson From Facebook Stock: Stay Alert For Quarterly Earnings Growth Deceleration
The big sell-off by mighty FAANG stock Facebook not only gives investors a shot across the bow about the risk of sudden price corrections among big stock market winners.
It also reminds IBD readers that the risk of negative surprises and a slowdown in growth rates should never be ignored.
A record of accelerating growth rates in profits and sales can spark an outstanding breakout in a top-rated company. But a sudden deceleration in the rate of earnings increases can send months' worth of gains vanishing in a flash.
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