Traded Value$ASML(ASML.US)'s earnings report showed that revenue, profit, and gross margin all exceeded expectations... but the guidance provided was lower than expected, with the night market dropping nearly 4%...
It seems "Mr. Market" values guidance more than revenue...
ASML is a heavy asset company, currently with a PE of 50+, high valuation implies high growth. Scoring 98 before and 90 now is considered failing. This is short-term emotional capital voting with their feet... Another factor is geopolitics - the U.S. MATCH Act, with lingering export control concerns...
My advice is don't bet on earnings... Even if you had a 90% win rate before, losing once can send you back to square one!
Finally, AI demand remains strong. Whether it's Samsung/SK Hynix or others who will buy EUV machines like crazy, there might be an opportunity after the sentiment subsides.
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