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XYZ stock announced record earnings this morning for their last fiscal year, but the stock is...

XYZ stock announced record earnings this morning for their last fiscal year, but the stock is down 4.8% today. Please explain how this may be possible.

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One probable reason would be that it has failed to meet the investors expectations in the maket for the stock earnings before the earnings of company were declared and thus the price of stock would have been overvalued previously. However later when the increase in earnings were not as expected by investors the price of stock would have fallen down as it did not meet investors expectation. Another reason would be that its industry peers would have porformed much better than the particular company.

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