Dynatrace Revenue Up 25%, Stock Tumbles. Goldman Sees 24% Upside

If you are CEO of a public company, you face the same challenge each quarter: Can you beat investor expectations? If you do, your stock price goes up; if you miss, the stock falls.

The answer is not always clear cut. Sometimes, a company beats expectations for the previous quarter yet is not sure about whether to raise expectations. In that case, the CEO is better off leaving the forecast as is, and take the hit when investors punish the stock for not boosting guidance.