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Growth deceleration

πŸ“Š Earnings
β–Ό Usually bearish

Revenue 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

Not enough evidence yet

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%
Textbook view:β–Ό Usually bearishtypically 5-20% for high-multiple names

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.

DateStockWhat happenedNext day1 week1 monthvs S&P
Jan 21, 2022NFLX

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.