Earnings season has brought some great results from many companies, as net-income gains have pointed to solid performance from a fundamental standpoint. Yet in many cases, great earnings news is followed by a falling stock price. Why aren't investors happier about positive results?

In the following video, Dan Caplinger, The Motley Fool's director of investment planning, explains how stocks can fall even after great earnings. Dan explains how AT&T (NYSE:T), Boeing (NYSE:BA), and Ralph Lauren (NYSE:RL) have all beaten expectations that investors had for their most recent quarters. Yet Dan reminds investors that the stock market is a forward-looking mechanism, and when companies like these don't give the positive outlooks that shareholders want to see, a stock-price drop often follows. Dan concludes that looking back at past results is mostly useful for what they tell you about the future, and smart investors maintain a future-looking focus in their investing choices.

Don't let falling stocks freak you out
When stocks behave strangely, it makes many people think investing isn't worth the risk. Yet those who've stayed out of the market have missed out on huge gains and put their financial futures in jeopardy. In our brand-new special report, "Your Essential Guide to Start Investing Today," The Motley Fool's personal-finance experts show you why investing is so important and what you need to do to get started. Click here to get your copy today -- it's absolutely free.

Dan Caplinger and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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