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Gordon Johnson, CEO / Analyst at GLJ Research, argues that nearly 90% of Wall Street analysts adjust their estimates so that public companies can consistently beat earnings expectations.
He describes Wall Street research as largely functioning as a marketing arm for publicly traded firms, suggesting that it is very rare for these companies not to surpass consensus expectations as a result.
Johnson has commented previously on market pressures during geopolitical instability. He explained that war can raise risk and push investors to sell assets including gold for dollar liquidity. In a separate note, he observed the TSLA put/call open interest ratio holding near 0.72x without a historic volume dip. These statements highlight Johnson’s ongoing focus on market signals and investor behavior.