GE earnings crash on Jan 22 2026

 Stock "crashes" following earnings reports typically occur when a company's performance or future outlook significantly misses investor and analyst expectations (the "whisper number"), triggering a rapid sell-off and high volatility. 

Recent Examples of Earnings-Related Stock Drops

Individual company stock prices can experience severe, short-term drops (not to be confused with a broad market crash) after releasing disappointing earnings or guidance. For example, in late 2025/early 2026: 

• Mobilicom Limited (NASDAQ:MOB) shares dropped over 99% on December 8, 2025, after a poor earnings report.
• Agape ATP Corp (NASDAQ:ATPC) saw a decline of over 94% on December 10, 2025, following a significant earnings miss. 

Other recent instances where company stocks declined due to various earnings-related issues include:

• Old Republic International Corp (ORI): The stock dropped nearly 14% in pre-market trading in Q4 2025 after an EPS miss, despite a revenue beat, reflecting concern over income metrics.
• Abbott (ABT): The stock fell after missing quarterly revenue estimates and forecasting lower current-quarter profit, specifically due to reduced COVID-19 testing demand and pricing pressure.
• McCormick (MKC): Shares sank after the spice maker issued a soft profit forecast for fiscal 2026, which was below analyst expectations.
• Netflix (NFLX): In July 2018, its stock plunged over 14% in after-hours trading after it added fewer new subscribers than expected, erasing billions in market value within hours. 

Key Insights

• Expectations Matter Most: The most significant factor is not just the actual results, but how they compare to the market's expectations (including unofficial "whisper numbers").
• Future Guidance is Critical: A weak forecast or "guidance" from management regarding future earnings or sales can heavily overshadow strong current results, leading to a sell-off.
• "Buy the Rumor, Sell the News": Often, a stock price runs up before the earnings report based on positive expectations. When the actual "good news" is released, investors sell to take profits, causing the price to drop.
• Hidden Weaknesses: Investors look beyond top-line numbers (revenue and profit), examining metrics like declining gross margins, cash flow issues, or increased expenses, which can signal underlying problems.
• Volatility is Common: Stock prices are highly volatile around earnings announcements as investors rapidly digest new information. Negative surprises tend to have a larger impact than positive ones. 

AI responses may include mistakes. For financial advice, consult a professional. Learn more