Interpretation is not Misinformation

Today $SODA lost more than 8% from its value. @firstadopter claims that the reason behind the price decline is misinformation, part of which was distributed via Twitter and StockTwits. While I agree that he makes a good point, he is not entirely correct. Interpretation is not misinformation. Everyone has the right to interpret a message however they like. Differing opinions make the market. You can buy or sell, but you can’t tell the market how to react. Market reaction is a function of sentiment, risk appetite and conviction.

I applaud @firstadopter’s crusade for honesty and transparency, but we have to accept the reality. The market is often irrational. Reaction to news is more important than the news itself. It is not rare to see a stock to sell off after the underlying company reports incredible earnings. It is what it is. You adapt and move on.

Disclosure: Currently I have no position in $SODA. I took advantage of the earnings driven short squeeze in May and I don’t have any troubles buying the stock if it sets up again.