Growth deceleration
π EarningsRevenue is still growing but the growth rate is slowing sequentially.
Typical size
5-20% for high-multiple names
Timeframe
Immediate re-rating, sometimes persistent
Evidence
1 logged event
Why it moves the price
High multiples are paid for high growth rates. When the rate slows, the multiple compresses even though earnings are still rising β this is why expensive stocks can fall on good results.
What separates a good call from a naive one
The higher the starting multiple, the more violent the reaction. For a 40x stock, deceleration is a bigger threat than an outright miss at a 12x stock. Check whether the slowdown is a tough comparison versus a genuine demand change.
Measured impact
Every logged event is measured against real closing prices: the move from the close before the event, compared with the S&P 500 over the same window.
Next day
-21.79%
- Median
- -21.79%
- Moved up
- 0% of 1
- vs S&P 500
- -19.83%
After 1 week
-23.92%
- Median
- -23.92%
- Moved up
- 0% of 1
- vs S&P 500
- -20.44%
After 1 month
-23.01%
- Median
- -23.01%
- Moved up
- 0% of 1
- vs S&P 500
- -20.21%
No measured verdict yet β 1 event logged. Three or more are needed before the data says anything useful.
The evidence (1)
Every row is a real event, measured against actual closing prices.
| Date | Stock | What happened | Next day | 1 week | 1 month | vs S&P |
|---|---|---|---|---|---|---|
| Jan 21, 2022 | NFLX | Subscriber growth guided sharply lower for the coming quarter Reported after the close on Jan 20. | -21.79% | -23.92% | -23.01% | -19.83% |
Measured from historical closing prices. Past reactions do not guarantee future ones. Not financial advice.