The Lesson From Facebook Stock: Stay Alert For Quarterly Earnings Growth Deceleration

The Lesson From Facebook Stock: Stay Alert For Quarterly Earnings Growth Deceleration

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.