3 ms·

Wouldn't a developer understand the significance of such an announcement better than an institutional investor?

• esrauch 15y ago
  They have people whose entire job is solely to understand the significance of announcements like this, if developers understood better then they would just hire developers. Either that is true, and they hired developers whose entire job is to evaluate the impact of things like this, or else developers aren't as good at predicting the effect of announcements like this. It would be extremely foolish to assume that people wielding literally billions of dollars are too stupid to ask the right people before deciding how to value something.
  • thesethings 15y ago
    I agree with your main point. But it's worth noting an interesting trend is developing. Amateur analysts are regularly outperforming professional analysts when it comes to tech stocks. http://seekingalpha.com/article/315207-apple-analysts-perpetually-clueless http://seekingalpha.com/article/315207-apple-analysts-perpet... http://tech.fortune.cnn.com/2012/01/02/bloggers-vs-pros-on-apples-q1-2012-a-5-billion-gap/ http://tech.fortune.cnn.com/2012/01/02/bloggers-vs-pros-on-a...
    • wdewind 15y ago
      Tech stock. Singular. AAPL.
  • bdr 15y ago
    I think it's possible that a full-time analyst understands less than someone who practices. Your comment in general smells of the EMH.
    • esrauch 15y ago
      My point is only that any given nonexpert very rarely outperforms an expert in any field. If you are a nonexpert you should always temper your beliefs; if you thought of it then why haven't the experts? Sometimes they will have thought of it but not executed for some reason, but something that seems simple and obvious usually seems that way because it actually is.