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Wes Turner @westurner
, 17 tweets, 3 min read Read on Twitter
So, every quarter a public business must release an earnings report. Earnings reports are filed in EDGAR in XBRL XML.
When there appears to be a significant amount of volatility in the share price between those quarterly reports, what do we attribute that to?
Do journalists have more information than is found in XBRL Earnings Reports?
If they do, they have either:
- Estimates of demand
- Insider information which is not yet public
- Intent to sell news articles and move the price up or down
The CEO and CMO must play this game daily.
<taps gauge imploratively while continuing to speak with you>
In the long run, assuming rational investors have learned how to read earnings reports (or pull the data from e.g. Morningstar or directly from EDGAR), we should expect earnings reports data to be the strongest signal (the most correlated factor) of the stock price.
… with in-between or short-run variations in stock price caused by intentional media magnification of the slightest little things.
Listing on a business like NASDAQ *OR* NYSE exchange is one way to raise capital: the IPO valuation and IPO create money (on paper) for shareholders
Not content with enforced work/life trading hours such as nights and weekends, traders prefer to write articles about assets they don't own and digital assets on the weekends.

This is how value is created: the stock market. Securities. The American Dream.
What would I do with money from a tax cut? Buy back my company's stock. No better investment; that's what I always say.

That stock can then be issued as supplemental compensation as options (with volatility!) or sold to raise capital later.

And/or, you can sell bonds.
How do we estimate the future earnings potential of a tech stock?

Let me answer your question with a question: what is the value of one 10**-8 of a Bitcoin?

This was looking more like a technology adoption curve: here and here.

(Quantum wave functions is the correct answer)
If you made it that far (quantum wave functions) in your math and science curricula and find yourself in the finance industry with an understanding of cryptography, private, and public keys; I salute you for your contributions to humanity: the stock market.
It's not zero-sum.
It's a beautiful perception of beauty in the world.
Uh huh. Just put it back in there.
Yup, just put it into the market.
You don't want to buy gold,
You just want to put it back in there
<knowing nod, smile, and a wink>
Bitcoins? No, that would be risky. How would that help you buy things from the future?
Uh huh, right back in there.
You're thinking about energy when you speak with me?
That's alright, we can buy solar and wind at a later date and time.
Great paper, though. A "thesis", huh? Great work.
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