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Return of the Meme Stocks, Big AI Announcements, Solving a Market Mystery With Nick Colas and Jessica Rabe

The Compound and Friends

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Algorithmic Trading and Earnings Expectations

Algo trading algorithms quickly analyze and compare earnings numbers with historical averages at sector and subsector levels, making a penny beat insignificant when the average beat is much larger. This is why stocks react swiftly to earnings as algos use companies' earnings history to assess against long-term averages, prompting the question about the continual overestimation of annual estimates.

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