Looking for earnings surprise from Cheetah Mobile - 1-day trade

NYSE:CMCM   Cheetah Mobile Inc
Cheetah Mobile has beaten earnings estimates on 8 out of its last 10 earnings dates. That makes it a good candidate to win again. Generally, when Cheetah Mobile beats estimates, it rises for just a single day and then falls again the day after. I've made a $500 bet that we get an earnings surprise, and I will liquidate the position tomorrow morning either way.

As a general rule, companies whose stock price has declined in recent weeks get a bigger bump from an earnings surprise and a smaller drop from an earnings miss. In addition to having routinely beaten estimates, Cheetah Mobile has also seen a 30% drop in share price since March. That makes it a good candidate for an earnings play.
Cheetah reported an earnings miss, but a revenue gain. It climbed as high as 2.5% in after market trading. It lost most of that, but as of 7:30 am it's up about .5%.
I closed out my position while it was up. Good thing, because it's now down 4%.


The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.