So one of the biggest mistakes I see beginners make is trying to predict a quarterly earnings report. And this isn't just with quarterly earning reports, but it's pretty much just trying to predict anything. and this is a common thing A Lot of people do and even myself even to this day, right? Our job is not to be perfect, but to Simply work on getting a little bit better as time goes on. today.

I'm going to be showing you a good example on a company that beat expectations yet it's still sold off, making again, a lot of potential investors lose money because of what was originally being factored in. I Really hope that you learned something new in this video, and if you do, please consider dropping a thumbs up and subscribing if you feel like we earned it. On top of that, if you have any questions, Beyond This video, shoot me a direct message via Discord and that's the first link in the description down below. Let me go ahead and just start sharing my screen.

We're going to be talking about Apple stock Apple The largest market cap for any company that's publicly traded. Reported earnings today on August 3rd I Don't know when I'm uploading this video, but just a heads up. Earnings per share expectation was 1.19 EPS which is earnings per share reported came in at 1.26 higher than expected Revenue Came in at 81.8 billion when the forecast was 81.73 billion, again coming in higher than expected. So why is it that the actual stock itself sold off? Because if we look at Apple stock it originally was indicating signs of an uptrend actually live streamed this quarterly earnings report And one thing that I talked about is it sometimes doesn't even matter about beating expectation because if its guidance is off or isn't completely blowing it out of the water just like this thing was already up 1.4 percent before it actually reported earnings.

Therefore, if it came in as expected or a little bit less than expected, it built up all of this hype before the actual report. and if it doesn't end up meeting up with that hype, then this is exactly what follows. After right, what ended up happening is the overall guidance was off for Apple. The guidance was a little bit lower than expected and this is one thing that we talk about very very often is that normally there's two parts to every earnings report.

There's the actual earnings report itself excuse me which is the actual reporting on the previous quarter, right? The previous quarter is complete and this is the report on how Apple stock did for that previous quarter. Previous means in the past and of course we want to see as investors that the company itself has done well. but what is almost something more important for investors, we want to make sure that if we want to continue to keep our money invested in this company, right? because that's what it is, if we want to continue to invest our money into this company, we want to make sure that the forecast and the guidance for the up and coming quarters are better than expected. And if they're not, then something like this happens, right? So it's not just what has been reported for the past before, but also what's to come in the future.

And this is where you often see a quick change of direction from the earnings report to the earnings call. The two different parts right. We beat expectation again. it tried to indicate signs of an uptrend, it didn't meet up with the hype, it pulled on back guidance call happened and it still continued to sell off.

Now of course it's not the end of the world, it's only two percent, but we'll see what happens. We'll see what happens with Apple stock and see if it continues to sell off or if it actually begins to recover. But I Thought that Apple would be a very simple stock to use as an example of a great company that beat expectation for its quarterly earnings. yet it's still sold off because it didn't have proper guidance for up-and-coming quarters or exceeding expectation.

and I think that this is again goes back to that core principle of Why Try to predict the future when you can simply try to prepare for it. So instead of having a position invested in something hoping that something happens that has not been confirmed, stay in cash and then being and waiting for the market to react and then going into it, right? I Would rather be late to a rally than early to a sell-off. A very simple saying that we have within our Lpp team. so I just wanted to give you a real world example on why In my experience, it has never been in my best interest to try to predict the future of a company as at the end of the day, no one ever knows exactly what is going to be reported and why quarterly earning reports or when something is about to be reported can be viewed as a risky time to have an open position because of the volatility that follows shortly after.

If you have any questions about what we talked about today I Encourage you shoot me a direct message via Discord and that's the first link down below I Hope that we're in the thumbs up and again. I Do want to invite you I Do trade live every single morning and if you want to watch me trade live the next day, the Market opens I'll see you at Market open for our live trading session and that's going to be the second link in the description down below. If you want to learn more about our Lpp team and how you can watch me and tune on in. I Appreciate your time like always.

let's make sure that we end the year on a green note. Thank you team!.