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I'm no financial expert, but it seems this would uber-stabilize the stock since algorithms (ingesting via scraping or human data entry) would trade near-perfect
by judge2020 5y ago
I'm no financial expert, but it seems this would uber-stabilize the stock since algorithms (ingesting via scraping or human data entry) would trade near-perfectly based on the statistics, leaving little speculation for retail investors/other impulse trades.
- andruby 5y agoUntil there is a “fluke” in the data. A bug, or an exceptional change. Things that would normally be corrected in the manual GAAP process before reporting. But now all the algorithms crash or bubble the stock price and a lot of people loose money. I’d love to see such (near-)realtime metrics though
- skybrian 5y agoNo, because even assuming an efficient market, future earnings are still uncertain, people will have different opinions about them, and that's most of the ballgame.
- bwilliams18 5y agoThat assumes that everyone, and every algo would take those metrics and translate and interpret them into a consistent share price. The value of any company, is only loosely linked to it's performance at any given point in time, and is highly dependent on assumptions (eg. rev. vs. cost growth) over time. This would reduce the information disparity between insiders and the market, there's still plenty of room for speculation.