It is "Actually Illegal" to write AI algorithms that break the law
In AI as Artificial Inflation, we started a discussion that I think will continue to be interesting to both finance people and data scientists alike, to both professional traders, and to those newbies or amateurs who are fresh to investigating their workplace or brokerage's use of their 401K monies.
The example company we're going to use logic-based compute and an author-claimed ™️ of Audaciously Intelligent AI (copyrighted at moment of inception) to hack away at example company's faulty valuation? If you have previously read any of my written communications with the Moomoo Community thus far, the name and ticker of this company will not be surprising. If you have not yet read other works created, do not click any links until you read through the whole list of hints; take a minute to "expand your mental model" ("expand ... " __translate model.mqe) and see if you can make an educated "guess" on what company we're going to run digital forensics upon. Several hints are provided after the next paragraph of disclaimers.
In the same way that trained data scientists can quickly find patterns in code, such as those patterns the Department of Justice recently sued RealPage over, because RealPage's algorithmic price-fixing of rents is illegal
(violates the Sherman AntiTrust Act, discussed in video link), so too can technical financial analysts quickly find patterns in money movement. Financial technical minds can find anomalies in earnings and financial statements, histories of debt-based funding, corporate tax payments (or lack thereof),
and market-based trends. When teams of professionals with college degrees and ability to analyze accurate, unfaked data find fraudulently forged data, magic happens and retail investors ( $Futu Holdings Ltd (FUTU.US)$'s Moomoo Community, for example) have a more level playing field upon which to earn and keep their wealth.
Whether data science or finance or tax or "something else" is your field of professional specialty, is important to not ignore your feelings when instinct tells you something is not right about a company's presently-traded value. There are many compelling reasons to not give up when insane / seemingly-insane institutional investors seem to have the upper hand. That an unemployed technical writer (and an American Indian, at that!) could, in fact, survive on her talents does not have to be a fantasy. That college dropout CEO's IPO partner stole most of her investment and will surely try to pay itself with the data science work she has been working on for more than 3 years -- before it pays her -- just means she needs stronger, more ethical partners.
First hint: it is a company with a fundamentally European brand and 17th Century ideals that incorporated < 15 years ago in Liberia, Africa.
Second hint: it has at least 5 formidable competitors with publicly-traded stocks that are selling the exact same thing it sells.
Fourth hint: the company relies heavily on the exact same advertising "platforms" its competitors use and it does not offer a significantly unique value proposition to its customers. It professes to be a "joint controller" of your "Social Media" data if you use a certain "hashtag" that is neither unique nor copyrightable and publish any of your vacation pics with its "Twitter" or "Facebook" or "Instagram" accounts, playing you for a "fool" on discrepancies in International data privacy laws.
Fifth hint: the fact that the company was not running a sustainable business became astoundingly obvious during the pandemic, when its Debt-to-Equity ratio soared to 7.43 or 743 percent debt right after these results were released.
Sixth hint: the company's ability to earn "realized revenue" is highly sensitive to climate-related inclement weather like hurricanes, tropical storms and cyclones; its ability to earn revenue is easily harmed by turbulent sensitive geopolitical realities, cost of petrol fuels, and things like port shutdowns.
Seventh hint: Early 2020 Market Cap was 4.9 B ("billion"); it lost 5.8 billion in 2020 and lost 5.3 billion in 2021. Yet based on metrics from the middle of August 2024, its loans are more than twice as large as Twitter's junk bonds while it fakes valuation bigger than Twitter's before Twitter went private.
What company is headed for autopsy?
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Exhibits / data forensics -- read after your educated "guess"
732 words
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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