Part of the value of the stock is expected returns, and if the expected returns suddenly change than the value of the stock will suddenly change too. I don't think that it's necessarily an omen.
Re:Apple Reports Record Third Quarter Results
by forgetsusername on Tuesday July 21, 2015 @05:20PM
(#9925899)
>but even so it is amazing how detached stock brokerage is from investment and how close it is from gambling.
Funny, I reach the exact opposite conclusion: people were willing to pay a specific price for Apple dependent on the expectations of future earnings. Those earnings didn't meet expectations, therefore the market adjusted the price. Working as intended.
The Company posted quarterly revenue of $49.6 billion and quarterly net profit of $10.7 billion, or $1.85 per diluted share. (...) Gross margin was 39.7 percent compared to 39.4 percent in the year-ago quarter.
Investor conclusion: Apple is not doing so well. There is something wrong with the stock market when a company post record profits, almost 40% margin (on electronics) and that's seen as an omen.
I understand it is the opposite, brokers bet earlier that the results would be even better and are now unloading the bets at a lower price (causing the market correction) but even so it is amazing how detached stock brokerage is from investment and how close it is from gambling.