Here are two things to focus on when a company is reporting earnings. What is is its expectation. The expectation is something that market analysts set for that stock an can be something like tesla. There's an expectation when it comes down to its earning per share.

And there's an expectation when it comes down to its revenue expectation if it falls above or below can either cause a positive or negative catalyst to that specific stock. The second thing you need to know is that it's not just the earnings report. But it's actually sometimes the guidance that ends up being even more important. I don't know if you've ever experienced this yourself.

But a company can report positive earnings for that quarter. But it can foreshadow or forecast negative guidance for its up and coming quarters and the stock can actually drop regardless of what it reported.