What Affects the BE Stock Price?
The BE Stock price, just like any other stock price, is dependent upon many different factors: The economic outlook, supply and demand, the influence of company news, the release of a new product or service, expected growth rate, inflation, trends in society, securing new large contracts, layoffs, and even changes of management can all positively or negatively affect the BE Stock price.
The volatility of the BE Stock price is also predicated upon many more factors, too. However, the ones listed below are among the most significant. Additionally, the BE Stock price may stagnate for short or long periods of time due to the status quo of the company and the economy being stagnant. Read on to learn more about what may effect the BE Stock price.
How the Economic Outlook Effects the BE Stock Price
There is no question that the BE Stock price is inexorably tied to the health of the respective economy with which its company resides in. Such things like increased GDP, as well as economic recessions can all affect the BE Stock price.
Correlation Between BE Stock Price & Supply and Demand
Supply and demand of the company’s products/services can effect the BE Stock price significantly. For example, if the demand for their product/services outpaces the supply, then the BE Stock price is likely to go up. On the other hand, if the supply outweighs the demand for the product/services the company offers, then we may see a decreased BE Stock price.
Although not directly related, typically, when investors notice that the demand for the product is higher than the supply, this is good for business. Thus, causing more investors to purchase more stock and increasing the demand for the stock. Consequently, this may increase the BE Stock price as a result.
The Influence of Company News
Company news can definitely affect the share price. For example, if the company puts out a press release explaining how they are shutting down hundreds of stores nationwide, this may negatively effect the BE Stock price. On the other hand, news that they are opening hundreds of new stores may increase the BE Stock price as many investors may see this as a great opportunity to purchase stock from a growing company, thus increasing the demand for the stock.
BE Stock Price & New Products/Services Being Released
When a new product or service is announced, this may positively effect the BE Stock price. This is especially the case if the novelty item in mind is one that the public is very excited about. This anticipation may cause more people to purchase additional shares of the company, thus increasing the share price.
BE Stock Price & Expected Growth Rate
Whenever the company releases its projected earnings report for the subsequent quarter, such news may increase or decrease the share price. For example, if the projected earnings report showcases increased profits, then the BE Stock price may increase as more investors purchase more shares. Conversely, if the projected earnings report shows lackluster earnings, then many investors may sell off their shares to exit their investment, thus lowering the share price.
Besides releasing a projected earnings report, there are also other expected growth rate factors that can effect the BE Stock price, such as the overall consumer sentiment, as well as the investor’s sentiment and trust that the company will continue to grow.
How Inflation Effects the BE Stock Price
There’s no question that inflation can drastically impact the BE Stock price. When inflation gets out of control in a nation, this means that the purchasing power of the respective country’s currency is diminished. This lack of value can effect the BE Stock price negatively simply by virtue of the stock itself not holding its value when converted to the country’s native currency.
How Trends Effect the BE Stock Price
Like all trends and fads, they come and go. If the company were to come out with a product that was trendy, then this may increase the BE Stock price in the short-term, only having the BE Stock price to decrease in the long-term once the trend ends.
How Securing a New Large Contract Can Increase the BE Stock Price
The BE Stock price can be effected if the company is able to secure a large contract with a new supplier or vender. Depending upon the specific products/services the company offers, this could drastically alter the BE Stock price.
Conversely, when news breaks out that the company has lost several large contracts that were once thought to be secure, the BE Stock price may lower due to many investors deciding to sell off their shares of stock before the BE Stock price decreases in value.
How Employee Layoffs or Large-Scale Hiring Effects the BE Stock Price
The BE Stock price may increase significantly if the company lays off a large number of its employees. This is mainly due to the fact that such information will likely be released to the press in some way, thus resulting in many of its shareholders to lose hope in the company and to then sell off their shares.
On the other hand, if the company is found hiring large amounts of employees, especially for specialized positions, then this means that the BE Stock price may increase as more people will purchase shares in the company with hopes that all of these new hires means growth in the company and ultimately an increase in share price over time.
How a Change of Management Can Effect the BE Stock Price
When the company changes management, this may affect the BE Stock price, especially if the change in management is believed to be a positive or a negative thing. For example, if a new CEO is taking over the company, who the CEO is, as well as what he or she is bringing to the table may significantly impact the BE Stock price.
The same can be said if the new management being hired is a controversial figure in society, one that would likely bring about negative press to the company. Such a move may cause the BE Stock price to decrease due to investors selling off their shares for fear that the BE Stock price would decrease further as a result of the potential incompetent leadership of the company’s new managers.