I honestly have never in my life understood the point. Let me break it down. Company X releases earnings. 1.50 per share on revenue of 2 billion dollars. Net profit 450 million. Well, the stocks TANKS because those analysts said it should report 1.51 per share on revenue of 2.1 billion. The company has said guidance is in line with what they have reported earlier in the year. Let’s look at this objectively. If there were NO metrics from analysts to compare the earnings against, would the stock have gotten destroyed? I would say unequivocally no. So, what’s the point? What is the reason for analyst ‘expectations?’ I see absolutely no benefit. But, would love to hear someone much smarter than I explain it to me. Thanks!

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