It doesn't feel like the results justify the 20% drop.
You have to remember one main way analysts estimate what a share is worth today - they model out time-discounted earnings in perpetuity. A company that is expected to grow in the future is worth much more today than a company that isn't expected to grow at all.
The stock didn't drop because they missed this quarter alone, it's because all the analysts models are now assuming future earnings will grow much more slowly into the foreseeable future.
You have to remember one main way analysts estimate what a share is worth today - they model out time-discounted earnings in perpetuity. A company that is expected to grow in the future is worth much more today than a company that isn't expected to grow at all.
The stock didn't drop because they missed this quarter alone, it's because all the analysts models are now assuming future earnings will grow much more slowly into the foreseeable future.