Why do some stocks rise even tough they are not showing some good earnings?

Question

can somebody explain this phenomena!

thx

Answer 1

Outlook for growth, also top line growth.    Investors figure if sales keep growing, earnings will take care of themselves.   In some industries they're correct - some companies you ramp up expenses before the sales happen - - if you're expanding into a new terroritory or selling a new product, etc... you might staff up, and lease new space, before the sales materialize.