There are differing opinions on whether or not it makes sense to hold stocks into earnings reports. One camp argues that you stand to make a big score if a company beats its numbers. Another camp – the one I’m in – says it’s way too risky because you can never predict how the market will respond to an earnings report. I have two very specific examples that support both sides of the argument.
First up is Amazon that beat expectations handily in its most recent earnings report and you can see in the chart below that the stock was nicely rewarded: