I’m in with quite a large position myself, and there are really nervous moves here time and time again. Even good news doesn’t seem to give the stock much momentum, but even the slightest bit of bad news leads to -10% drops. Is the market generally like this when it comes to reacting to news?
I understand that news indicates the direction for the day or the longer term, but sentiment is what likely dictates the actual magnitude of the rise or fall.
Today’s news certainly doesn’t justify a 5–10% drop in the company’s market value, but it shows the nervousness surrounding the stock. Perhaps the answer is an overvaluation from 24 months ago?