I need help with responses to these discussions. In response to
your peers, support or respectfully challenge their evaluation of
how the trend affects their company or industry.
Hello,
New Constructs uses Robo-Analyst to collect data from annual and
quarterly reports, including data only included in the footnotes,
as a way to analyze how well the company is doing by examining its
operating profit and income (Wang and Thomas, 2021). This would
allow New Constructs to better analyze how a company was really
doing by reviewing more than just what was on the financial
statements.
My chosen company is Disney and I think this does affect Disney
in some ways. New Constructs already has reported on Disney and how
they dominate their industry. It compares the NOPAT of both Netflix
and Disney, as they are often competitors, and they give a better
representation of how ahead Disney truly is. It examines the NOPAT
of both Netflix and Disney and finds that Netflix has unreasonable
valuation growth for the future when compared to Disney, which is
seen as more realistic (McBride, 2021). Not only this but New
Constructs technology, Robo-Analyst, also found discrepancies in
Disney's financial statements in 2021 when compared to previous
years. It found that they had reported no "Other income" when they
have in the past. Disney typically reports non-cash gains/losses as
other income but this time did not. Robo-Analyst found that Disney
reported a non-cash gain in one investment and a non-cash loss of
the same amount in another investment, instead of filing them as
"other income," which can be misleading because it doesn't show the
entire picture of the profitability of Disney (Shuler,
2021).
-Matthew
Hello Class,
Robo advisors provide advice and are an alternative to
traditional experts. There is uncertainty among some specialists
because many wonder if Robo advisors collect enough information. In
the same way, for others, the lack of information is not a problem
because it also occurs with traditional clients and advisors. For
and against robots, the experts agree that precise regulation is
necessary to defend the interests of customers and define
companies' responsibilities (bbva.com). I think, yes, that my
company would be affected by this new trend. The article mentions,
"Critics also pointed out some notable misses in New Constructs'
stock recommendations. Amazon, for example, never received a New
Constructs rating above "Neutral." However, the company's stock
price grew over 7,000% since 2003. Other companies like Amazon,
Netflix, and Salesforce.com were also persistently regarded by New
Constructs as "inexplicably expensive" from a rational perspective"
(Harvard Business School, 2021). According to the results of Robo
advisor in exhibit 9, "Rating Method," the Netflix company is not
an attractive one for investors. According to an SEC risk alert,
the regulator used by Robo advisor issued deficiency letters to
most digital advisors it examined, with the most common issues
relating to inadequate compliance policies, misleading statements
or inadequate disclosures in marketing materials, and portfolio
management not meeting fiduciary obligations (financial
-planning.com). Robo advisor is a low-cost service for future
investors, but not getting reliable information is a risk. This
affects the companies as well because if the information that
prospective investors are contacting is not truthful and reliable
would bring a negative outcome, like losing potential investors. It
is also worth mentioning that Robo advisors would cause or reduce
the job opportunities of many financial advisors. I think it would
be better to implement collaboration between the two. I believe
that the human factor when doing business and investing is
crucial.
Other emerging trends that might affect my company are:
- Irma
I need help with responses to these discussions. In response to your peers, support or respectfully challenge their eval
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