Crowdsourcing Platform Estimize Beats Wall Street

Every quarter Wall Street analysts predict the earnings of companies, and it is no secret that 70% of the time companies beat those earnings projections due to a bias by the narrow perspective and motives of Wall Street.  There is an incentive to under project earnings in order to drive sales and also please the company that each individual analyst covers which is the main reason that the stocks beat sell-side earnings projections more often than not.  A better way to estimate stocks and some market indicators has been developed by Estimize using the technique of crowdsourcing.  Crowdsourcing in general is using groups of people to complete a task that are outside of the organization; crowd + outsourcing.

     

Estimize is a growing online community which includes a diverse group of people from many different industries who give their earnings estimates each quarter for publicly traded companies. The main principal of Estimize is using a much larger and diverse sample size along with sophisticated algorithms and analytics in order to achieve a more accurate estimate of a company’s earnings projections than ever before.  The Estimize consensus estimate has been more accurate than the traditional method 69% of the time and is regularly referenced in notable financial media sources such as Forbes, Barron’s, The Wall Street Journal, CNN Money, The Street, Investor’s Business Daily and Business Week.  and has been more accurate than the traditional method 69% of the time.

The Estimize philosophy is that they really do not care where their community members come from or if they have any qualifications because the accuracy of their predictions is analyzed and ultimately there is more weight to users with more accuracy.  An interesting development involves the ranking of individual Estimize participants according to their accuracy statistics which is creating some interest in them personally. This creates a reward for making accurate predictions in an increase in followers from the exposure which is also driving more total users to participate in Estimize. As the number of users increase on this crowdsourcing site the value of the data will also increase along with the potential for high ranking individuals to attract followers.  Watch out for the crowd Wall Street!

Estimize.com