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You're reading: Why some stocks are sinking despite big profits
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The stock of Chipotle Mexican Grill has climbed four-fold in five years, and for good reason. Most quarters, the company would report surprisingly high earnings and investors would clamor to buy. But last month, the pattern broke. Chipotle posted blockbuster earnings, but investors sold.

The company’s sin? It missed its target for revenues. The stock fell 21 percent, from $404 to $317, in a day.

Chipotle is not alone. Six in 10 big companies reporting second-quarter results have missed revenue targets, according to FactSet, a financial data provider. That is the worst showing since the recession.

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