Press Releases

The success shows both Box and Shake Shack were momentum plays — driven by hype and expectations of further price gains instead of fundamentals, said James Gellert, president and chief executive officer of Rapid Ratings International Inc., which uses quantitative models to grade securities.

“When a stock meets or exceeds expectations and the stock goes down, clearly there are a lot of investors in there just for the momentum play,” he said. “But it’s unrealistic to expect these companies to do better and better and better and exceed guidance all the time.”