• scarabic@lemmy.world
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      6 days ago

      I work for a publicly traded company and I have some visibility into what’s happening with our products and business. Then I read the Y! Finance page about our stock and it’s all weird math trends analyses and absolutely zero about our company, its fundamentals, and the future of our business. Stock trading is just a bunch of assholes trying to sift the sea of numbers to divine a magic formula. The irony is that their own behavior drives the price changes, so they are feeding straight into the data they are trying to read and act on. What a circle jerk.

      • dan@upvote.au
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        6 days ago

        The market is wild sometimes. I work for a fairly large company. Sometimes in our earnings reports, we exceed EPS and revenue expectations (which is good of course), but don’t exceed them as much as some analysts think we’ll exceed them, so the stock goes down. The expectation is that we’ll always exceed the expectations lol

        • scarabic@lemmy.world
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          6 days ago

          Yes, and good news about the company can drive the stock price down, if enough people decide that that’s probably a high point for the near future and a good time to sell and take profits.

        • btaf45@lemmy.world
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          6 days ago

          Companies should not even be issuing future “earnings expectations”. They mean little and warp the market. Drives me crazy when I hear financial talk about "future p/e’. It’s just a fake number. The only real p/e ratio is the trailing p/e ratio.

    • Allonzee@lemmy.world
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      7 days ago

      Let’s be honest, our “free market” is a regular casino for the plebs that own about 10% of shares in their 401ks and Robinhood accounts, and an intentionally rigged casino for the oligarchs that own the rest, with marked insider information cards, and loaded market manipulation dice.

      Gotta love when the bootlickers defend this economy, and market investment, as somehow inclusive, when 93% of stocks are owned by 10% of Americans.

      (Saved Fortune article) https://archive.ph/DW0A8

      • BallsandBayonets@lemmings.world
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        6 days ago

        It would suck if working class Americans lost their retirement money due to Wall Street getting what they deserve. But what sucks more is that our retirement system is based on letting rich people gamble with your money in the first place!

    • bokherif@lemmy.world
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      7 days ago

      I guess it depends on your main goal. I started out as a gambler then lost a bunch of money and started actually investing. But at the end of the day every transaction you make can be called a gamble.