Whats the Best Way to Look at Earnings?

Whats the Best Way to Look at Earnings?

Assessment

Interactive Video

Business

University

Hard

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The video discusses the common misconception of using earnings expectations to predict stock prices. It highlights that earnings are backward-looking and often manipulated by companies to meet or beat expectations. The video also explains how tech companies, like Apple, manage expectations to influence stock prices. It emphasizes the importance of looking at revenue numbers and economic indicators for a more accurate assessment of a company's performance.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What does the speaker suggest about the relationship between earnings and stock prices?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What is the significance of looking at revenue numbers in relation to earnings?

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