Becomes Quote by Ben Horowitz
“Going public today is fraught with peril on many levels. One is earnings guidance. If you miss guidance, the stock price becomes very volatile. Short sellers can put a tremendous downward pressure on the stock.”
About This Quote
Source Speech: Interview on TechCrunch, 2015
Public companies face many risks, especially when they miss earnings forecasts, leading to volatile stock and pressure from short sellers.
In simple terms: Missing earnings guidance makes stocks volatile.
Key Takeaway
Beware of guidance risk.
Themes
finance
risk
stock market
leadership
corporate governance
Mood
cautious
analytical
Type
business
financial
When to use this quote
- investor presentations
- earnings calls
- stock analysis
- financial planning
Key Concepts
earnings guidance
short selling
market volatility
Questions to Reflect On
- How can a company set realistic guidance?
- What strategies reduce short‑seller impact?
A Different Perspective
Guidance can be mitigated with transparent communication and realistic targets.
