Cara Therapeutics (NASDAQ: CARA) announced its second-quarter financial results after the market closed on Thursday. The next day, Cara stock soared. But it wasn’t because of the financial numbers: Cara lost $9.3 million in the second quarter with no revenue whatsoever.
Instead, Cara Therapeutics’ share price surged in large part because investors liked what they heard about the company’s prospects in its conference call. Great expectations over those prospects have driven Cara stock up more than 60% so far this year.