What Moves Stock Prices? (Investor-Friendly Explanation)
What moves stock prices: fundamentals vs sentiment, earnings, interest rates, news, and how long-term investors should think about price changes.
Stock prices are supply and demand
In the short run, prices move because of buying and selling pressure. Over the long run, business fundamentals (earnings and cash flow) tend to dominate.
Common drivers
- Earnings surprises and guidance
- Interest rates and inflation
- Industry trends and competition
- News events and sentiment
- Valuation (how expensive the stock is versus fundamentals)
Look up a stock price
Use stock pages to see price, fundamentals, and intrinsic value context together.
FAQs
Do stock prices follow fundamentals?▼
Over long horizons, prices tend to reflect fundamentals. In the short term, prices can deviate significantly due to sentiment and liquidity.
Why do good companies sometimes fall?▼
Expectations may have been too high, macro conditions can change, or investors may rotate out of a sector—even if the business remains strong.
Related
Intrinsic Investor is for education and research only. Not financial advice.