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:

• Video Streaming Services Continue to Invest Heavily in Content - The top media industry trend will be heavy investment in video streaming content (investors.com).
• User Experience Takes Center Stage - Video streaming services aren't only throwing money at content, but they're also investing heavily in the user experience (investors.com).
• As Movie Theaters Gain, Will Video Streaming Sustain? - Another key trend that will affect video streaming services like Netflix and Disney+ is the return of the movie theater (investors.com).

- Irma