Valuation doesn't come from what's happening now, it comes from what is expected in the future. The whole point is to put in money to make more money later.
The earning report doesn't need to be bad for investors to see the projected outcomes for future quarters and say "hm... my money is best put somewhere else, whose earnings report showed more potential for growth".
The earning report doesn't need to be bad for investors to see the projected outcomes for future quarters and say "hm... my money is best put somewhere else, whose earnings report showed more potential for growth".