Stocks are getting punished more than usual for missing Wall Street estimates

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Stocks that miss Wall Street's earnings per share estimates are having their worst two-day price reaction since 2011.

showed on average S&P 500 companies reporting weaker than expected earnings per share in during the third quarter have seen their stocks fall 5.2% in the next two days on average. That's more than double the 5-year average and marks the worst performance since stocks fell 8% in the following two days during the second quarter of 2011.

One of those companies is AI lending platform Upstart. The company posted an earnings per share loss of $0.05 in the most recent quarter, wider than the $0.02 loss expected by Wall Street analysts. Additionally, Upstart's revenue fell 14% from the same quarter a year ago, and its guidance for sales in the upcoming quarter came in lower than what Wall Street had hoped for.

"It's important as an investor to really understand what kind of risks you're taking on because companies are getting hit hard by higher interest rates, especially smaller speculative companies, and you see that flow through in events like earnings and management calls," Cox said. "The effects become more apparent."

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