Earnings-Call Sentiment Analysis & Corporate Health Forecasting

Understanding the health and future outlook of a corporation is a crucial indication for investors and stakeholders to consider when making investments. Thus, AI can take its step again in ensuring consistent decision-making. Earnings calls, where companies report their financial performance and future projections, are a goldmine of information for these stakeholders. AI driver sentiment analyst tools can parse through these calls, identifying key sentiments and trends that are not immediately apparent. Ex. Nvidia’s stock price is constantly changing, and one of the causes is its future outlook and performance files; thus, these files are important to investors.
Whilst sentiment might revolve around important items needing human attention, the opposite might bring more benefit. By analyzing the language used during earnings calls, AI algorithms can better gauge the confidence and optimism of company executives, providing further insight. This sentiment analysis can be combined with other financial metrics to better forecast the future health of a corporation. For example, a positive sentiment combined with strong financial indicators might signal a promising outlook. The ability to forecast corporate health is nearly exclusive to AI, thus changing the game again, and allowing investors to make better informed decisions and financial institutions to suggest their portfolios accordingly.

Source: Yahoo Finance