Publicly traded companies have certain obligations. One of them is to keep their shareholders informed about the state of their business by filing periodic reports with the SEC. Given that these quarterly reports are investors’ best and often only chance to get first-hand information on how a company is doing, Wall Street’s reaction to these earnings releases is a good indicator of how content shareholders are with a company’s performance.
Looking at the stock market reaction to the most recent earnings reports by some of the largest tech companies in the world, we see mixed results. While both Amazon and Facebook saw their stock prices climb significantly on the day after they reported their results, Twitter and Netflix faced the wrath of investors in the wake of reporting disappointing numbers or offering weak guidance.
Our chart below sums up Wall Street’s verdict on major tech companies' first quarter results.