Ever wonder why stock prices swing wildly even when companies seem stable? In this deep dive, we uncover the real forces behind stock price movements. We explore the "excess volatility puzzle," break down the role of Street Earnings versus GAAP earnings, and explain why traditional valuation methods might not tell the full story. Learn how investor psychology, expectations, and hidden metrics can impact stock valuation—and discover how Street Earnings can give you a clearer picture of a company’s true performance. Join us as we decode market noise, uncover hidden gems, and help you make smarter, more informed investment decisions. Key Highlights: - The problem with GAAP earnings and "special items" - What makes Street Earnings more reliable for valuation - How stock prices reflect investor expectations - Tips to avoid biases like confirmation and recency bias If you’re curious about what really drives the market, this episode is for you. Research available here: https://quantpedia.com/valuing-stocks-with-earnings/ For more quant-focused content, join us at ⁠⁠⁠⁠https://community.quantopian.com⁠⁠⁠⁠. There, you can explore a wealth of resources, connect with fellow quants, engage in insightful discussions, and enhance your skills through our extensive range of online courses. Quant Radio is an AI-generated podcast, intended to help people develop their knowledge and skills in Quant finance. This podcast is not intended to provide investment advice.