Significant short-term divergence between a company’s business performance and stock price is a feature of the stock market, not a bug.
Long-term returns only come to those who are willing to bear that short-term price volatility, and pay that admission fee when others won’t.
Examples of 5 charts to bring this point home:
(1) Zoom Video Communications $ZM
(2) Zscaler $ZS
(3) The Trade Desk $TTD
(4) Adobe Inc $ADBE
(5) CrowdStrike $CRWD
Short-term daily price performance almost always does significantly deviate from long-term business performance.
Be a business-focused investor, not a price-focused one.
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