Rovio the Finnish company behind Angry Birds had a wild run today
Crash, bam, bom, went the price of Rovio today as it warned of not growing as much as expected. The beginning of the year has been an unpredictable time for many companies listed on the Helsinki stock exchange. Many companies have had an insane growth spurt in price after releasing their positive results for 2017. Others have dropped insanely after not living up to expectations. Pretty much all the companies I've been following have had an over reaction in one or the other direction.
Today Rovio told that their revenue grew only 55% in the past year with their earnings before income tax was only 19%. The reaction: -50% in company price. During these times I feel like buying the shit out of the company that goes on such a sale, but at the same time I start doubting myself. Do the others know something I don't? But seriously, why would you sell for -50% when a company grows 55% in one year? That doesn't happen in the stock market. Sometimes I feel the average investor is as stupid as a brick. Well, that of course is not the case, a brick isn't stupid, it doesn't think so it doesn't make such mistakes. Jokes aside, when thinking about what really happens it makes more sense. People panic. They see something happening, they press the trigger and do whatever others do. They follow the herd.
Similar things happen in the cryptocurrency world. Actually they happen pretty much every day here. Some currency declines 10% and people jump on the lever and sell everything only to see the price go up 200% the next week or month. I'm waiting to see what happens with Rovio. But I don't expect to see any radical upward movements for a long time. The stockmarket is generally very slow at these things. Therefore, I don't know if even I could sleep at night if I invested in it currently. It might take literally years to go back up, at which point the company might have grown to be a money generator, but emotions will keep people from getting in after this wild ride.
Just felt like writing about it. That's it for today.