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Crocs (CROX) reported earnings, beat, but dropped more than 17%

CROX CROX beat the estimates but provided weak outlook for the next quarter. Morons rushed to sell everything, including their house, wives, kids, dogs, and CROX. The stock dropped over 17% (as of now), and it was down more than 21% this morning.

It amazes me how stupid the market is (or market participants). A CEO polishes his or her crystal ball, looks into the future, and prophesies a new number. And the prophecy was bad. Spooky investors and algos rushed to exit and screamed along the way.

 
CROX stock drop
 

They completely ignored the fact that the stock is extremely undervalued based on the adjusted operating earnings (yes, the valuation may change, but the long-term outlook is still way positive). The short-sighted Wall Street doesn’t look beyond the next quarter. Chasing a quick buck prevents them from seeing the whole picture. While to them, the next quarter is a catastrophe, to me, it is an opportunity.

 
CROX stock valuation
 

And so, while they were selling, I decided to be buying. Thank you for letting me enter 20% cheaper than yesterday!

 





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